European Commission looks to expand MiCA to cover emergence of tokenization, non-EU stablecoin issuers: report

The European Union is looking to revise its Markets in Crypto-Assets Regulation (MiCA) about a week after the landmark crypto rules went into full effect, according to euronews.

The European Commission is reportedly seeking comment from stakeholders until Sept. 30, as it gauges whether to expand the rules to encompass emerging technologies like tokenization and non-EU stablecoin issuers, euronews reported, citing several anonymous sources with knowledge of the situation.

MiCA is the EU's comprehensive regulatory framework that creates uniform rules across the bloc for crypto-asset issuance, trading, custody, and other services. While the rules came into effect in December 2024, there was a grace period for many service providers to implement the changes until July 1 of this year.

The commission is reportedly looking to revise MiCA in light of developments since the rules were written, including the emergence of tokenized securities, which several EU- and non-EU-based crypto exchanges are beginning to offer, as well as the continuing adoption of stablecoins.

In particular, the packages may be updated to reflect regulatory advancements in the U.S. after President Donald Trump signed the GENIUS Act into law last summer, legalizing the issuance of fully-backed "payments stablecoins."

MiCA, as written, already regulates stablecoins — and is arguably more comprehensive than the GENIUS Act. The regulations create two categories of stablecoins: e-money tokens (EMTs), pegged to a single fiat currency like the euro or dollar; and asset-referenced tokens (ARTs), pegged to baskets of currencies, commodities, or other assets.

E-money tokens follow similar requirements to U.S. payments stablecoins, requiring 100% reserve backing in safe assets and prohibitions against paying yield. GENIUS makes similar reserve demands on stablecoin issuers and does not legislate on yield, which has emerged as a significant issue as Congress tries to pass broader market structure regulations.

ARTs must follow stricter requirements, including higher capital buffers, stricter liquidity limits, and direct supervision by the European Banking Authority. Some tokenized real-world assets that behave like ARTs, like tokens backed by commodities and real estate, fall under MiCA’s rules.

However, MiCA does not directly address tokenized securities, which remain under existing EU-backed securities laws.

Tokenized stocks are an exploding category. There are now $2.16 billion worth of onchain stocks, according to RWA.xyz, up nearly 45% from last month.

There are many different types of tokenized stocks, including tokenized stocks that mirror a security and are backed 1:1 by the underlying asset, as well as tokens that are themselves securities and represent full shareholder rights.

"Reopening the file seems unavoidable at this stage, not only in light of the position expressed by several European institutions (not least the ECB), but also to cater for the most recent regulatory and technological developments worldwide," an unnamed EU diplomat told Euronews.

The European Commission opened an inquiry in May raising the question of whether the rule may have to be updated, without naming tokenization directly.

"Since the MiCA Regulation was developed, digital asset markets have continued to evolve, with the global policy and regulatory landscape also changing significantly," the commission wrote. "The Commission is therefore assessing whether the EU framework needs to be updated in light of market and international developments."

Ahead of July’s grandfathering period, just 244 firms were authorized as Crypto-Asset Service Providers (CASPs) under MiCA.