EU May Soften MiCA Rules for Stablecoins—But Not Everyone’s Happy
Rumors are swirling that the European Commission might ease up a bit on its strict MiCA rules for stablecoins. Not a full overhaul, mind you—just a tweak to let globally traded stablecoins work alongside EU-approved ones.
But the European Central Bank isn’t having it. They’ve pushed back hard, doubling down on their preference for a digital euro instead. The argument? Stability risks for European banks. Though, to be fair, ignoring the growing stablecoin market might carry its own dangers.
How MiCA Shook Things Up
Since MiCA kicked in last December, the crypto scene in Europe hasn’t been the same. Some would say it’s changed too much, too fast.
Take stablecoins. The global market’s booming, but one major issuer already pulled out of the EU because of MiCA’s red tape—and their business didn’t exactly crumble. Now, regulators are rethinking whether they’ve been too rigid.
According to Reuters, the European Commission is considering a small but significant shift. The licensing process won’t get any easier, but if a company has both an EU-approved stablecoin and a global version, they could soon offer both interchangeably in Europe.
Sounds minor, but it’s already caused headaches. Back in March, Ethena tried getting MiCA approval for its German arm to issue stablecoins—denied. Shortly after, they left the continent entirely. If this rule changes, though, any firm that clears the hurdle for one token could operate freely across the EU.
The ECB’s Pushback
Not everyone’s on board. The ECB reportedly opposes the idea, and they’ve been vocal about it. Back in April, they actually pushed for *tighter* stablecoin rules, not looser ones.
Their alternative? A digital euro. ECB President Christine Lagarde reiterated that stance this week, framing it as a way to steer clear of U.S. political influence. But here’s the thing: even with strict rules, companies are finding workarounds. And Europe’s role in crypto? It’s shrinking, not growing.
If clamping down on stablecoins *is* risky, losing the industry altogether might be worse. A digital euro sounds neat in theory, but it doesn’t solve the immediate problem—people want stablecoins, and they’ll get them one way or another.
An unnamed Commission official pushed back on the ECB’s warnings, telling Reuters that a “run on a well-governed, fully collateralized stablecoin is very unlikely.” And even if it happened, they argued, redemptions would likely happen outside the EU anyway.
So, what’s next? If the Commission gets its way, stablecoin users in Europe might catch a break. Get one token approved in a friendlier jurisdiction like Malta, and suddenly, it’s good across the bloc.
But with the ECB digging in its heels, this fight’s far from over.
