EU Eyes MiCA Changes to Ease Stablecoin Rules and Raise Tokenization Cap

The European Union’s Markets in Crypto-Assets regulation, or MiCA, began applying its stablecoin rules on June 30, 2024, and took full effect on December 30 that year, establishing a regulatory framework for issuance and trading. The proposed revisions could affect access for offshore stablecoins such as USDT and the global competitiveness of the EU’s tokenized financial markets.

The European Commission recently launched a MiCA 2.0 consultation to consider an equivalence regime for non-EU stablecoin issuers and raising the DLT Pilot Regime’s market cap for tokenized assets to €100 billion. The review will also cover DeFi, staking and cross-border supervision, helping determine the scope and timetable of subsequent legislative changes.