TL;DR
- The European Union is preparing a review of MiCA for 2027 aimed at regulating stablecoin issuers based outside the European bloc.
- The progress of the U.S. GENIUS Act and President Trump’s promotion of dollar-backed tokens have intensified the regulatory debate in Brussels.
- The total stablecoin supply grew by more than 50% during 2025, reaching approximately $317 billion in April of this year.
The European Union is preparing to reopen its crypto-assets regulatory framework (MiCA) with the goal of extending its reach to stablecoin issuers established outside the bloc, according to European diplomats cited by Euronews.
MiCA, the bloc’s reference regulation, entered fully into force on July 1, but some officials already consider a revision inevitable. “Reopening the file seems unavoidable at this stage,” one of the diplomats stated, pointing to pressure from the European Central Bank and the significant and rapid regulatory changes taking place in other markets.
The current MiCA framework does not specifically regulate non-European companies that issue stablecoins and operate within Europe. That gap is the core of the projected revision, which also aims to incorporate emerging technologies such as tokenized payments and tokenized deposits, two segments officials anticipate will grow steadily in the coming years.
Washington Pushes Back and Reshapes the European Market
The triggering factor is the legislative landscape in the United States. President Donald Trump signed the GENIUS Act, which establishes a federal framework for dollar-backed stablecoins, and actively promoted these instruments as a tool to expand the global reach of the dollar. Given that around 97% of the world’s stablecoins are denominated in dollars, European officials fear a massive influx of dollarized tokens into the European market without adequate oversight.
MiCA and the Monetary Sovereignty of the Euro
ECB President Christine Lagarde has been the most outspoken voice in favor of establishing stricter rules. Lagarde has repeatedly warned that dollar-denominated stablecoins could drain deposits from the European banking system and erode the monetary sovereignty of the euro.
The ECB presented in March a payments strategy based on two initiatives, Pontes and Appia, aimed at settling transactions in central bank money over blockchain technology infrastructure. The European Commission will receive input from stakeholders until September 30 before deciding whether to formally reopen the MiCA regulation. Any amendments are expected to be addressed in 2027.
