The European Union will review the stablecoin interest ban with the MCA amendment

The European Commission has launched a review of its landmark crypto regulation, signaling that the EU is considering reforms to its major digital asset framework two years after it came into force.

The Commission on Wednesday launched a public consultation seeking feedback from the crypto industry and the public on whether EU markets should be updated with the Crypto-Assets Regulation (MiCA). The consultation will remain open until August 31.

The Commission noted that crypto markets and the global regulatory environment will “continue to evolve” after the MCA comes into force in 2024, prompting authorities to assess whether the current framework remains “fit for purpose”.

The move marks an important regulatory development in the EU, with some industry observers referring to possible future updates to the framework as “MiCA 2”.

Stablecoin interest ban included in regulatory review.

The targeted consultation under MiCA is a detailed inquiry designed to assess how the regulation is working in practice and where adjustments are needed.

It seeks feedback on ongoing classification challenges, particularly the blurred boundaries between crypto assets and traditional financial instruments under EU law, including capped tokens, synthetic assets and fund interests.

A major focus is the stable coin, including re-examination of MiCA's ban on interest or interest-like payments. The commission is asking whether this limit should be maintained or revised, alongside broader questions on reserve requirements, liquidity management, redemption rights and the use of “significant” benchmarks.

Adapted from the targeted consultation on the MiCA review. Source: E.C

Beyond stablecoins, the consultation will examine new risk areas including decentralized finance (DeFi), staking, lending, intangible tokens and crypto asset service providers (CASPs), as well as around market integrity, investor protection and easing enforcement regulations.

Related: Euro stablecoin project Qivalis adds 25 banks before launch

The inclusion of DeFi and financial assets is particularly notable as both areas remain outside the scope of MiCA.

EU examines whether consumers actually trust crypto.

The public consultation document shows that the Commission is not only assessing whether the MCA works as a legal framework, but whether ordinary consumers understand and trust digital assets under the new rules.

Many of the questions focus on user awareness of Bitcoin (BTC), Ether (ETH), stablecoins, DeFi and tokenized assets.

Adapted from the public consultation on the MiCA review. Source: E.C

It also explores what will increase customer confidence in crypto services, including stronger safeguards, clearer regulations, improved regulation and easier access through regulated banks and payment providers.

The review comes as the MCA approaches a key transition deadline of July 2026, after which CASPs must be fully authorized under the EU framework or cease operations.

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