EU Opens Public Consultation on MiCA Stablecoin and DeFi Rules

The European Union's Markets in Crypto-Assets Regulation, or MiCA, has established uniform rules for crypto-asset issuers and service providers, but services that are fully decentralized are generally outside its scope. The Malta Financial Services Authority, or MFSA, is focusing on governance and accountability in decentralized finance. Its proposals could affect the legal status of decentralized autonomous organizations, as well as developers, operators and other participants.

In a newly released discussion paper, the MFSA is considering how some DeFi activities could be regulated under the MiCA framework. It also examines legal structures including decentralized autonomous organizations, or DAOs, and guardian agents, along with which entities could assume compliance responsibility. The paper does not cite any specific monetary amounts, and public consultation is open until July 10.

The European Union’s Markets in Crypto-Assets Regulation, or MiCA, requires euro-denominated e-money tokens to be fully backed by reserves and prohibits interest payments to holders, measures intended to prevent stablecoins from replacing bank deposits. The market capitalization of dollar stablecoins has surpassed $300 billion, while euro stablecoins account for less than 1% of global supply, raising implications for Europe’s payments autonomy and the euro’s international standing.

On April 27, 2026, Blockchain for Europe published a report by Ulrich Bindseil and Erwin Voloder stating that MiCA covers only three of the 50 largest stablecoins. The report called for easing requirements that general issuers hold 30% of reserves in bank deposits and significant issuers hold 60%. It also proposed allowing limited returns linked to reserve income and broadening the range of eligible, highly liquid euro-denominated assets.

Stablecoins use fiat-currency reserves to maintain their value and can bridge traditional finance and onchain transactions. SG-FORGE, the digital asset subsidiary of Societe Generale, issues USDCV with a face value of $1 per token and reserves held in custody by BNY. It is classified as an electronic money token under the European Union’s Markets in Crypto-Assets regulation, or MiCA, and its compliant status could help bring bank assets into Web3.

SG-FORGE and MetaMask developer Consensys announced the completed integration on April 15, 2026. USDCV was added to MetaMask’s selection of featured stablecoins on its mobile and web platforms, allowing millions of users to use it for fiat on- and off-ramps, cryptoasset trading, DeFi and Gas Station fees. Approximately 26.337 million tokens were in circulation as of that date.

The European Union's Markets in Crypto-Assets regulation, or MiCA, became law in 2023 and has applied in phases since 2024, establishing harmonized rules for token issuance, stablecoins and crypto-asset service providers. As the market becomes more institutionalized and tokenized, whether the current regime can cover emerging business models has become a key issue for the next phase of regulation.

Peter Kerstens, a European Commission adviser and architect of the MiCA framework, told Paris Blockchain Week 2026 that the EU was highly likely to pursue “MiCA 2.” He argued that tokenization should take priority over rushing to add DeFi rules. The EU is expected to complete a review by 2027 based on market maturity and industry feedback, while considering potential legislative amendments.

Decentralized finance, or DeFi, uses smart contracts to provide trading and lending services, while DAOs make decisions through governance-token voting. The EU's Markets in Crypto-Assets Regulation, or MiCA, generally excludes “fully decentralized” services. Whether control is concentrated therefore directly affects who may be regulated, where legal liability lies and whether a protocol can claim an exemption.

On March 26, 2026, the European Central Bank published Working Paper No. 3208 analyzing Aave, MakerDAO, Ampleforth and Uniswap. Snapshots from November 2022 and May 2023 showed that the top 100 addresses in each protocol held more than 80% of its tokens. Ampleforth's top 20 voters controlled 96% of delegated votes, while MakerDAO's top 10 controlled 66%, suggesting regulators may need to identify a MiCA regulatory anchor case by case.