EU opens MiCA 2.0 comment period; crypto industry seeks stablecoin clarity
In brief
- European Commission opened May comment period on MiCA 2.0 revisions to crypto regulatory framework.
- Stablecoin rules (Part 2) represent longest, most politically contentious section of consultation.
- Crypto industry seeks euro stablecoin competitiveness via reserves, rewards, and interest-bearing structure changes.
- MiCA full enforcement began December 30, 2024, establishing EU as first major comprehensive crypto regulator.
MiCA's Foundation and Current Scope
MiCA's full application and enforcement began on December 30, 2024, with the first licenses issued in early 2025. The EU moved faster than the United States in establishing a regulatory framework for crypto, creating a single, harmonised rulebook across member states. But the framework has blind spots. MiCA does not currently cover crypto asset service providers (CASPs) that are fully decentralized and operate without any intermediary, leaving a regulatory gap that DeFi protocols exploit.
The consultation on MiCA revisions is split into four parts. Part 2, which affects stablecoins, is the longest and arguably the most politically charged section. This focus makes sense. Stablecoins are the on-ramp for retail adoption and the backbone of EU DeFi activity.
Stablecoin Competitiveness Under Fire
The crypto industry is pushing hard for euro stablecoin competitiveness through an updated version of EU crypto law. One major pain point: currently, euro money token (EMT) issuers are prohibited from offering interest on stablecoins. Coinbase, a major voice in the consultation, argues this rule weakens euro stablecoins. Prohibition of interest on euro-denominated stablecoins can weaken their competitiveness and push users toward foreign-currency stablecoins or yield structures outside the regulated perimeter.
Coinbase's proposed fix involves recalibrating how stablecoin reserves are managed. Allowing a greater share of stablecoin reserves to be held in high-quality sovereign assets could reduce risk without compromising safety. The firm also wants the rules to permit non-interest incentives like cashback and loyalty programmes, which are standard in traditional finance but currently unclear under MiCA.
Broader Regulatory Clarity
The consultation reflects a wider industry ask: regulatory clarity in DeFi, stablecoins, and tokenization. Coinbase's director of policy for Europe told industry media that refinements to MiCA could help ensure the framework remains competitive in the next phase of digital asset regulation. The EU's early move to regulate crypto was bold, but without these revisions, the framework risks becoming a competitive liability rather than an asset.
