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The European Union appears set to revise and broaden the scope of its landmark Markets in Crypto-Assets (MiCA) regulation to cover non-EU issuers, in light of market developments and an increasing push from the United States for stablecoins, according to a Euronews report.
The European Commission, the executive arm of the EU, launched a targeted consultation on May 20 aimed at digital assets industry representatives (such as crypto-asset service providers and issuers) and public authorities (e.g., national or European supervisors, central banks, and Ministries of finance), to assess whether the MiCA regulation remains “fit for purpose.”
According to an August 8 Euronews report, an unnamed EU diplomat told the outlet that “reopening the file seems unavoidable at this stage, not only in light of the position expressed by several European institutions (not least the ECB), but also to cater for the most recent regulatory and technological developments worldwide.”
One potential area for revision is how MiCA deals with stablecoins issued or jointly issued outside the EU. While MiCA generally requires that stablecoins offered to the public or admitted to trading in the EU have an appropriately authorized EU issuer, EU authorities have identified gaps in the treatment of certain third-country and multi-issuance arrangements, in which parts of the issuance and reserves may remain outside the EU regulatory perimeter.
The current status quo has persuaded some leading issuers to pull out of the EU. Most notably, the world’s most widely circulated stablecoin, USDT—issued by the El Salvador HQ’d Tether—lost access to regulated EU exchange trading following the end of MiCA’s transition period on July 1, 2026.
However, with the global stablecoin market booming and the current U.S. administration increasingly backing the asset class, pressure has grown among EU legislators and member states to follow suit.
Stablecoin payments volume reached $390 billion annually in 2025, up from less than $30 billion in 2020, based on data from business management consultant firm McKinsey & Company. Future predictions are even more striking; last year, U.S. Treasury Secretary Scott Bessent predicted that stablecoin supply could reach $3 trillion by 2030, while multinational investment bank and financial services company Citi (NASDAQ: C) forecast that stablecoins could reach $4 trillion by the end of 2030 in its bull-case scenario.
Despite 98% of the current stablecoin market already being U.S. dollar-denominated, U.S. President Donald Trump has been keen to strengthen the U.S. currency through this new technology.
After coming into office for a second term last January, Trump threw his considerable weight behind stablecoins—especially those based in the U.S. and denominated in the dollar—while also banning central bank digital currency (CBDC), which some see as a rival to private sector stablecoins.
To this end, one of his first executive orders, from January 2025, called for “promoting and protecting the sovereignty of the United States dollar,” including through actions to promote the development and growth of dollar-backed stablecoins worldwide.
The same executive order also demanded: “Taking measures to protect Americans from the risks of Central Bank Digital Currencies (CBDCs), which threaten the stability of the financial system, individual privacy, and the sovereignty of the United States, including by prohibiting the establishment, issuance, circulation, and use of a CBDC within the jurisdiction of the United States.”
Trump also lit a fire under stalling stablecoin legislation, in the form of the GENIUS Act, which was finally passed in July of last year and—barring some complaints with regards to an included ban on stablecoin issuers paying yield—was broadly welcomed by much of the crypto industry for giving stablecoins a clear regulatory framework, legitimizing them, increasing institutional adoption, and reducing uncertainty for crypto businesses.
The EU consultation on its digital asset rules, including those for stablecoins, creates an opening for the bloc to reconsider how MiCA treats non-EU stablecoins and cross-border issuance.
Whether that ultimately produces a more hospitable environment for the sector, or tighter safeguards around foreign-issued stablecoins, will depend on the Commission’s review and the legislative process that follows.
The MiCA consultation is open until September 30 for those in the “specialized audience” who may want to comment.
