The European Commission has initiated a comprehensive public consultation, often dubbed 'MiCA 2.0' by industry observers, to assess and potentially revise its landmark Markets in Crypto-Assets (MiCA) regulation. Launched on May 20, 2026, the consultation invites feedback from a broad range of stakeholders, including crypto asset issuers, service providers, financial institutions, and the general public, until August 31, 2026.
This review is a crucial step for the European Union as it seeks to ensure its regulatory framework remains fit for purpose amidst the rapid evolution of digital asset markets. MiCA, which entered into full application in December 2024, was designed to provide a harmonized framework for crypto assets and related services. However, the crypto landscape has continued to develop at a swift pace since the regulation's initial drafting, prompting the Commission to evaluate whether the current rules adequately address new market realities and emerging risks.
A primary focus of the consultation is stablecoins, particularly the existing prohibition on interest or interest-like remuneration for e-money tokens (EMTs) and asset-referenced tokens (ARTs). The Commission is questioning whether this restriction should be maintained or revised, alongside broader considerations of reserve requirements, liquidity management, redemption rights, and the thresholds used to determine 'significant' tokens. Industry participants are keen to see adjustments that could enhance the competitiveness of euro-denominated stablecoins.
Beyond stablecoins, the consultation delves deeply into decentralized finance (DeFi), an area largely outside MiCA's original scope. The Commission is examining how to effectively regulate DeFi protocols, staking, lending, and non-fungible tokens (NFTs). A key challenge highlighted is defining 'decentralization' itself, with regulators seeking practical methods to evaluate the degree of decentralization of crypto-asset service providers rather than a simple binary assessment. This could lead to new regulatory frameworks for these burgeoning sectors, potentially requiring due diligence from Crypto-Asset Service Providers (CASPs) when linking clients to DeFi platforms.
The review also addresses ongoing classification challenges, particularly the blurred lines between crypto assets and traditional financial instruments. Questions are being raised about the regulatory treatment of wrapped tokens, synthetic assets, tokenized fund interests, and prediction markets, assessing whether they should fall under MiCA or existing financial directives like MiFID.
This initiative underscores the EU's proactive approach to digital asset regulation, aiming to maintain its first-mover advantage while adapting to global market developments. The feedback gathered will inform the Commission's future policy work and could lead to legislative proposals to amend or complement MiCA, with concrete proposals not expected until 2028. The comprehensive nature of this consultation signals the EU's commitment to fostering responsible innovation while mitigating risks related to investor protection, market integrity, and financial stability in the evolving digital asset space.
Original announcement: European Commission