EU weighs 2027 MiCA rewrite to tighten stablecoin oversight

The European Union is preparing to revisit its main crypto law as soon as 2027, with foreign stablecoin issuers in focus, Euronews reported, citing several EU diplomats. For everyday crypto users and investors, the issue is practical: the rules could affect which dollar-linked tokens exchanges and apps can offer in Europe.

The law in question is MiCA, short for Markets in Crypto-Assets, the EU framework for crypto companies, token issuers and trading platforms. Euronews reported that the European Commission is collecting stakeholder feedback until September 30 before deciding whether to formally reopen the legislation.

MiCA only fully took effect on July 1, according to Euronews, but officials already see parts of it as dated. One EU diplomat told Euronews that reopening the file looked unavoidable, pointing to pressure from European institutions, especially the European Central Bank, and to fast changes in crypto regulation and technology outside the bloc.

Why stablecoins are the focus

Stablecoins are crypto tokens designed to track the value of another asset, most often the U.S. dollar. They are widely used to move money between crypto exchanges, park cash during volatile markets and make blockchain-based payments without taking direct exposure to Bitcoin or Ether price swings.

EU officials are concerned that the current MiCA framework does not directly cover non-EU companies that issue stablecoins while serving European users, Euronews reported. That matters because stablecoin issuers can be spread across several countries, making supervision more complicated than for a bank or payment company with a clearer home regulator.

The planned review is also expected to consider tokenized payments and deposits, Euronews reported. Tokenization means representing a real-world financial asset or claim on a blockchain or similar digital ledger.

Washington’s stablecoin push adds pressure

The European discussion follows a policy shift in the United States. President Donald Trump signed the GENIUS Act last year, creating a federal framework for dollar-backed stablecoins, according to Euronews. Trump has also promoted dollar-pegged tokens as a way to expand the dollar’s role.

Dollar stablecoins dominate the market. The Financial Action Task Force has said around 97% of stablecoins worldwide are tied to the dollar, while the Federal Reserve said total stablecoin supply rose by more than 50% in 2025 and reached about $317 billion by April.

European officials worry that a larger flow of dollar-backed tokens into the EU could weaken the euro’s role in payments. ECB President Christine Lagarde has warned that dollar stablecoins could pull deposits away from banks and challenge Europe’s monetary sovereignty, according to Euronews.

MiCA has already changed what European users see on crypto platforms. Euronews noted that companies including Revolut have delisted Tether’s USDT stablecoin, while authorized issuers such as Circle have gained an advantage under the EU framework.

The ECB has also started building its own approach to blockchain-based settlement. In late March, it introduced a payments strategy centered on two initiatives, Pontes and Appia, aimed at settling distributed-ledger transactions in central bank money, according to the central bank.

For now, no rewrite has been finalized. The next step is the Commission’s feedback process, with any formal MiCA revisions expected to be taken up in 2027, Euronews reported.

This story draws on original reporting from Decrypt.