It is reported that the European Union (EU) has already decided to revise the current regulatory framework governing the licensing and operations of cryptocurrencies and stablecoins in the eurozone, despite the fact that the Directorate-General for Financial Stability, Financial Services, and Capital Markets Union is currently consulting on whether to amend this framework or leave it as is.
European diplomats have indicated that the EU intends to amend the Markets in Crypto-Assets (MiCA) framework, which regulates cryptocurrencies in the region, in order to address the issue of stablecoin issuers from outside the EU who were excluded from the licensing procedure due to established requirements.
The review is also influenced by the adoption of the GENIUS Act in the United States and the support the Trump administration has given to stablecoins.
The current regulatory framework does not account for the largest foreign stablecoin issuers, including Tether, and legislators aim to rectify this situation. Patrick Hansen, Senior Director for EU Strategy and Policy at Circle, expressed concern about the consequences for European cryptocurrency users, emphasizing that the current implementation of MiCA leaves them "either unprotected or cut off," and that this omission represents a "significant gap."
Furthermore, the new regulatory framework will take into account the development of new technologies such as tokenization: diplomats will consider whether to expand the scope of MiCA to include new tokenized means of payment and deposits.
"At this stage, a revisit of this issue seems inevitable, not only in light of the stance expressed by several European institutions (including the ECB), but also to account for the latest regulatory and technological developments worldwide," an unnamed diplomat told Euronews.
Although MiCA's transitional period for Crypto-Asset Service Providers (CASPs) just concluded on July 1, the framework was approved by the EU Council on May 16, 2023, meaning many of its provisions are based on realities dating back over three years, which is a significant period for an innovative industry like cryptocurrency.
