Europe Readies a MiCA Rewrite to Rein In Foreign Stablecoins

The EU plans to reopen MiCA to cover foreign issuers

The European Union is preparing to reopen its Markets in Crypto-Assets (MiCA) rulebook to bring non-EU stablecoin issuers under its supervision. Several EU diplomats told Euronews that a rewrite looks likely in 2027. The current framework does not specifically govern companies based outside the bloc that issue stablecoins but still operate across Europe. Regulating them is harder because a single stablecoin can be issued by multiple entities in different jurisdictions. Officials also want to widen MiCA's scope to cover emerging technologies, including tokenised payments and deposits, which they expect to grow in the coming years. The move would mark the first major revision of the bloc's flagship crypto law.

A consultation runs until September before any decision

The European Commission is consulting stakeholders until 30 September 2026 before deciding whether to formally reopen the legislation. MiCA's licensing requirement for crypto-asset service providers only took effect on 1 July 2026, yet lawmakers already treat a review as likely. Under the regulation, the Commission must report to the European Parliament and Council on how MiCA is working by 30 June 2027, with a legislative proposal attached if warranted. Some in the industry have dubbed the potential rewrite "MiCA 2.0," though any binding changes remain years away. European supervisors have signalled tighter oversight in parallel: the European Securities and Markets Authority (ESMA) said it will examine how licensed crypto firms manage custody and operational risks from July 2026 into 2027.

Washington's GENIUS Act pushed Brussels to respond

The rethink is a direct response to moves in the United States. Last year, President Donald Trump signed the GENIUS Act into law, creating a federal framework for dollar-backed stablecoins, and he has promoted the tokens as a way to extend the dollar's global reach. About 97% of stablecoins worldwide are pegged to the US dollar. The gap has become urgent as US issuers expand abroad. EU officials worry about a flood of dollar tokens entering Europe and the questions that raises for financial stability and consumer protection.

A fast-growing market raises the stakes

Stablecoins are tokens pegged to a real-world asset, usually the US dollar, and they sit outside the traditional banking system, which lets them escape standard banking rules. Total stablecoin supply grew by more than 50% over 2025, reaching about US$317 billion by April 2026, according to the Federal Reserve. MiCA has already reshaped the European market: Revolut delisted Tether's USDT to comply, while Circle secured authorisation as a compliant issuer.

USDC held its dollar peg at time of publication

USDC, the dollar stablecoin issued by Circle, traded at US$0.9998 at the time of publication, effectively holding its one-dollar peg. Its market capitalisation stood near US$73.3 billion, with 24-hour trading volume above US$12 billion (CoinPaprika, 10 July 2026). The figures show the scale of dollar-linked tokens circulating as European regulators weigh their response.

The ECB warns dollar tokens threaten euro sovereignty

The European Central Bank (ECB) has been the loudest voice for tougher rules. President Christine Lagarde has repeatedly warned that dollar stablecoins could drain deposits from banks and erode the euro's monetary sovereignty. She argues Europe should build its own public payment infrastructure rather than copy the US model. For now, the process remains in its early stages, and officials expect any revisions to be taken up in 2027.

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