MiCA regulation review targets stablecoins and tokenisation in EU

The European Commission has opened a MiCA regulation review that could broaden the European Union’s crypto rulebook to cover non-EU stablecoin issuers, tokenised financial products and decentralised finance, according to Carlo De Meijer, owner and economist at De Meijer Independent Financial Services Advisory. The process matters for crypto issuers, custodians, exchanges and financial institutions because any amendments could alter market access, compliance costs and supervisory standards across the bloc.

De Meijer wrote on Finextra that the Commission began formal consultations in May, after MiCA became fully operational on 1 July 2026. He said the EU is testing whether a framework drafted when crypto markets were smaller still fits a sector now shaped by faster stablecoin adoption, tokenisation and new rules in the United States.

What is the MiCA regulation review about?

MiCA, short for Markets in Crypto-Assets, is the EU framework for crypto-asset issuance, trading, custody and related services across the 27 member states. It covers crypto-assets, asset-referenced tokens and e-money tokens, and requires crypto-asset service providers to obtain authorisation to operate legally in the EU.

Asset-referenced tokens are linked to a basket of currencies, commodities or other assets, while e-money tokens are typically tied to one currency such as the euro or dollar and must be backed by safe reserve assets. De Meijer said larger issuers face stricter reserve requirements and closer scrutiny from the European Banking Authority.

The review is expected to examine whether MiCA should reach further into three areas: stablecoins issued outside the EU but used by European customers, tokenised payments and deposits, and DeFi protocols. Tokenisation refers to representing real-world assets, such as securities or property, as blockchain-based tokens that can be transferred or traded digitally.

Stablecoins and US rules push Brussels to reassess

De Meijer said one driver of the review is the US GENIUS Act, which he described as a federal framework for payment stablecoin issuers signed last year by President Trump. The EU concern, according to his analysis, is that dollar-denominated stablecoins issued by US companies can circulate in Europe without being subject to the same direct MiCA obligations as EU-based issuers.

The Commission is seeking feedback on whether foreign stablecoin issuers should meet comparable standards, including audits and liquid reserve requirements, or face limits on access to EU users, De Meijer wrote. The review also addresses tokenised assets, an area he said has reached about $2.16 billion in market value after a nearly 45% month-on-month increase.

De Meijer said the global crypto market has also expanded, with cumulative market capitalisation rising from $3.3 trillion in May 2025 to $4.2 trillion in October 2025. Those figures, he argued, have intensified questions about whether the EU’s current regulatory perimeter remains sufficient.

Consultation timetable and supervisory action

The Commission has launched two consultation tracks, according to De Meijer: a public consultation open to broad stakeholder feedback and a targeted consultation for industry representatives, regulators, financial institutions, technology firms, academics and public authorities. Stakeholders have until 30 September 2026 to submit comments.

The feedback will inform the Commission’s report under Articles 140 and 142 of MiCA and may lead to a legislative proposal. De Meijer wrote that revisions are expected to be taken up in 2027, although a final legislative proposal may not arrive before 2028.

Separately, the European Securities and Markets Authority has begun its first common oversight action on crypto custody since the MiCA transition period ended, De Meijer said. ESMA will work with national competent authorities to review a risk-based sample of licensed crypto-asset service providers, focusing on private key protection, storage systems and operational safeguards. Findings are expected to be reported to ESMA’s Board of Supervisors in the second half of 2027.

De Meijer said 280 crypto firms are now authorised under MiCA, while reports cited in his analysis indicated that more than 80% of previously registered providers still lacked full authorisation when the grace period ended. For firms operating in Europe, the review signals that MiCA is shifting from initial implementation to active reassessment and enforcement.

This story draws on original reporting from Finextra Research.