EU Seeks Feedback on MiCA Revision Amid Stablecoin and DeFi Hype

The European Commission has launched a consultation on revising the MiCA (Market in Crypto-Assets) regulatory framework, which is set to impact stablecoins and Decentralized Finance (DeFi). The revision aims to address key issues in these areas.

Katie Harries, Coinbase's head of Europe policy, believes that MiCA has set an early global standard for digital asset regulation and given the European Union a first-mover advantage. However, she thinks some upgrades are needed to stay competitive in the next regulatory phase.

Stablecoins are considered one of the most sensitive areas in the revision talks. Katarina Veloso, head of regulation and compliance at Notabene, pointed out that the regulatory focus could vary depending on whether stablecoins are treated as a medium of exchange, a retail payment method or an infrastructure for inter-institution payments.

Harries suggested adjusting rules to boost the competitiveness of euro-denominated stablecoins. She argued that increasing the share of high-quality government bond-like assets could reduce risk without undermining safety. Additionally, she proposed allowing non-interest incentives such as cashback and loyalty programmes.