The European Union has begun preparing changes to its Markets in Crypto-Assets framework after the United States enacted the GENIUS Act, with regulators expected to review stablecoin rules and other digital asset provisions from 2027. According to a report published by Euronews, European Commission officials are preparing to revisit parts of MiCA regulation as the bloc responds to changes in the global regulatory landscape. The review will focus on how non-EU companies issuing stablecoins should be treated under the existing framework following the passage of the U.S. Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act. EU officials are expected to consider extending MiCA to cover tokenized payments and tokenized deposits, providing greater legal clarity for U.S.-based stablecoin issuers seeking to operate across the European Union's 27 member states.
EU lawmakers have approved a policy position calling for a comprehensive review of decentralized finance, non-fungible tokens, and staking activities under the European Union's crypto regulatory framework. According to the European Parliament, members on Tuesday adopted the report titled Digital assets – challenges for the competitiveness and integrity of the European Union's financial system, setting out Parliament's official position on the next stage of crypto regulation. The paper does not amend the Markets in Crypto-Assets regulation or impose new legal obligations on crypto companies, but it asks the European Commission to examine areas that remain outside the existing framework. The vote made the report the European Parliament's official policy position on digital assets, reflecting growing pressure in Brussels over segments of the digital asset market that remain outside MiCA's current regulatory scope.
The vote comes days after MiCA's transition period ended on July 1, when crypto-asset service providers that fall under the regulation became required to obtain either EU-wide or national authorization to continue serving customers across the bloc. With MiCA now in force, Parliament has asked the European Commission to assess whether decentralized finance, staking, crypto lending and borrowing, non-fungible tokens, and tokenized financial assets require additional regulatory treatment. The report also calls for consistent enforcement across member states, warning that different national approaches could weaken the EU's single market for digital assets. The European Commission has already opened a consultation on possible updates to the framework, referred to by industry participants as 'MiCA 2.0', which seeks feedback on issues including decentralized finance, stablecoins and other areas that may require additional regulation. The public comment period will remain open until August 31. However, legal experts suggest the consultation process could take several years before resulting in formal amendments to the regulation, with concrete legislative proposals not expected before 2028.
The regulatory changes have already prompted significant industry restructuring, with some major crypto companies departing the European market after the new rules came into force. Tether has not obtained authorization for USDT under MiCA, prompting European platforms to begin delisting the largest dollar-denominated stablecoin. For lawmakers, this became a signal that overly strict or ambiguous rules may not only strengthen investor protection, but also push major crypto projects outside the EU, reducing the competitiveness of the European digital asset market. Many players decided that operating under the new conditions would become too complicated or expensive, with some companies failing to obtain the required authorizations while others chose to wind down operations in Europe or shift their focus to other jurisdictions. The regulatory uncertainty has created immediate compliance obligations for covered providers, while activities outside MiCA's current scope become more controversial as regulated entities seek clarity.
Recent market data has pointed to growing activity in regulated euro-backed tokens, with payments company Decta finding that the combined market capitalization of eight MiCA-compliant euro stablecoins increased 128% over the 52 weeks ending June 28, 2026, rising from $295.6 million to $673.9 million. Decta also reported a 43.1% increase in combined trading volume, while the number of compliant euro stablecoins with active market data grew from five to eight. According to Decta, EURC, EURCV and EURI accounted for most of the expansion. The report approved by the European Parliament also takes a more supportive stance toward tokenization and euro-denominated stablecoins, believing digital assets could improve the competitiveness of EU financial markets if regulation is applied consistently across the bloc.
Just one week into full MiCA enforcement, Europe already counts 21 licensed stablecoin issuers — and still zero approvals in the asset-referenced token (ART) category that regulators built the rulebook around. According to ESMA data referenced by Circle's Senior Director of EU Strategy and Policy, the EU now has 21 authorized electronic money token issuers spread across 12 member states, up from 19 issuers in 12 fewer countries back in March 2026. France remains the bloc's clear leader with six regulated issuers, followed by the Netherlands, Malta, Lithuania, and Luxembourg with two issuers each. Meanwhile, more than 270 crypto-asset service providers have now registered under MiCA, a milestone widely viewed as one of the regulation's early wins. However, out of the world's 50 largest stablecoins by market cap, only three — USDC, USDG, and EURC — currently meet MiCA's compliance bar, highlighting the regulatory challenges ahead.
Alongside the consultation process, European regulators are increasing supervision of companies already operating under MiCA. The European Securities and Markets Authority announced on Wednesday that it will examine the operational resilience of licensed Crypto-Asset Service Providers, with particular attention to custody-related operational risks. According to ESMA, the review will run from July through the first half of 2027 and will assess how licensed crypto firms safeguard customer assets and manage operational disruptions under the new regulatory framework. This enhanced oversight comes as regulators seek to ensure that licensed firms maintain robust operational standards and proper asset custody practices as the digital asset sector continues to expand across the European Union.
