European Union officials are preparing to revise the bloc's Markets in Crypto-Assets Regulation (MiCA) framework in 2027, according to reports from Euronews. The planned revision would examine how MiCA treats stablecoins issued outside the European Union, with European diplomats stating that 'reopening the file seems unavoidable at this stage'. The review comes as foreign stablecoin issuers, including Tether's USDT, have been unable to obtain authorization under current requirements, limiting their access to regulated exchanges across the bloc. However, the latest developments indicate the revision is specifically aimed at allowing non-EU stablecoin issuers to operate more freely within the bloc, potentially enabling companies like Tether to enter the European market under clearer conditions.
MiCA's final transition period for crypto-asset service providers ended on July 1, forcing covered companies to obtain authorization or stop providing regulated services. According to crypto.news, this change left Tether's USDT without a compliant route onto regulated EU exchanges because the issuer did not seek authorization. Major platforms including Coinbase, Kraken and Crypto.com removed USDT trading for European customers as a result. However, Circle secured authorization for USDC and EURC, while Stripe-owned Bridge recently joined the MiCA register, raising the number of authorized electronic-money-token issuers to 42. The stringent requirements for stablecoin issuers, particularly those based outside the EU, have limited market access and reduced options for European users.
The European Commission opened a targeted MiCA consultation on May 20 to determine whether the framework remains fit for purpose following its initial implementation. As reported by Euronews, the consultation covers developments that have occurred since MiCA entered application, with its deadline extended to September 30. Crypto issuers, service providers, regulators, central banks and finance ministries have been invited to respond, with feedback supporting a report required under Articles 140 and 142 of MiCA. The Commission indicated that this feedback could be accompanied by legislation to amend or expand the regulation if officials conclude changes are warranted. The review follows a formal feedback period and reflects concerns that the existing framework is too restrictive, with the European Central Bank (ECB) and other major institutions acknowledging that revisions are necessary to keep pace with technological advancements and international regulatory developments.
The reported review comes as the United States advances its stablecoin framework under the GENIUS Act, signed into law in July 2025. According to crypto.news, the law established federal requirements for payment-stablecoin reserves, redemptions, disclosures and supervision, giving issuers and financial institutions a federal structure for entering the sector. However, the CLARITY Act, formally known as H.R. 3633, which passed the House in July 2025 and cleared the Senate Banking Committee in May 2026 with a 15-9 vote, has hit significant obstacles over stablecoin yield provisions. Senate Republicans are balking at provisions that would allow stablecoin issuers to offer yield to holders, with banking groups arguing that such features would effectively siphon deposits through regulatory arbitrage. The bill needs 60 votes for cloture on the Senate floor, making passage increasingly difficult before the August recess.
If approved, the revised MiCA could significantly impact the European crypto ecosystem by potentially allowing non-EU issuers to obtain licenses more easily, enabling them to offer services to European users. European users may gain access to a wider range of stablecoins, including those backed by major global players, which could increase liquidity and foster innovation in tokenized payments and other emerging use cases. However, the review also raises questions about regulatory consistency and consumer protection, as the EU must balance openness with robust safeguards to prevent financial instability and illicit activities. The revisions are expected to address issues such as reserve requirements, transparency, and cross-border compliance, with the outcome of this review being closely watched by industry participants and regulators alike, as it could set a precedent for other jurisdictions.
