EU opens formal MiCA review; negotiator calls for proportional rules

The European Commission opened a public consultation on May 20 to review the Markets in Crypto-Assets Regulation (MiCA), nearly two years after the rules came into force in 2024. The consultation runs until Aug. 31 and asks citizens and industry participants to assess how the framework is working.

The review has two tracks: a public channel for individuals and a technical channel for issuers, exchanges, banks and policy bodies. Brussels will compare responses with market developments and regulatory actions elsewhere before deciding whether to propose limited changes or a broader follow-up package sometimes referred to as MiCA 2.

MiCA set harmonized rules across all 27 EU member states for asset-referenced tokens, e-money tokens and crypto-asset service providers. The Commission says the review aims to check whether the rules remain appropriate for market conditions that have shifted since the law was drafted.

Stablecoins are the most disputed part of the framework. Under the e-money token rules, industry trackers list about 30 approved fiat-backed tokens operating under MiCA. The parallel asset-referenced token category has not yet approved any products. Market participants and lawmakers are debating whether the rules are too strict for European issuers and whether the regime favors tokens denominated in U.S. dollars.

The review comes amid international regulatory activity on stablecoins. U.S. lawmakers advanced a stablecoin bill in recent sessions of Congress. European Central Bank President Christine Lagarde has expressed support for a euro-denominated stablecoin, and several European banks are reported to be preparing a MiCA-compliant euro stablecoin targeted for 2026. Smaller crypto firms have raised concerns that compliance costs and strict national enforcement in countries such as Germany and the Netherlands may push activity toward more permissive jurisdictions.

Ondřej Kovařík, a Renew Europe member of the European Parliament and of the Committee on Economic and Monetary Affairs, urged regulators to distinguish between large global trading platforms and small startups. He said, “We should not treat in the same way the global trade crypto exchanges coming from the US and listed on the US stock exchange market with the same rules that we treat a small startup company running a crypto business.” Kovařík also called for easing some stablecoin requirements for European issuers and for provisions to recognize equivalent regimes in countries such as the U.K. and Switzerland.

Commission officials have a limited window to gather input before any legislative proposal. They will assess submissions against recent market shifts and international regulatory moves. Depending on the findings, the Commission could propose targeted technical fixes or open discussions on a broader revision of the MiCA framework.