The European Union is taking a closer look at its crypto regulations, with the European Commission launching a review of the Markets in Crypto-Assets Regulation (MiCA). The aim is to determine whether current rules are still effective as digital asset markets continue to evolve.
The consultation seeks feedback from industry participants and consumers on a range of issues, including stablecoins, decentralised finance, and tokenised assets. Specifically, it examines the ban on interest payments for stablecoins, reserve requirements, liquidity management, redemption rights, and thresholds used to classify significant tokens.
Regulators are also reassessing classification challenges involving wrapped tokens, synthetic assets, and tokenised fund interests due to unclear distinctions between crypto assets and traditional financial instruments. This review comes ahead of a key deadline in 2026, which requires all crypto asset service providers operating in the EU to become fully authorised under MiCA or cease operations.