The EU just opened the door to changing MiCA

A Formal Review Opens as the Deadline Looms

The @EU_Commission has launched a public consultation on a review of its landmark Markets in Crypto-Assets Regulation (MiCA), opening a formal channel for industry participants, regulators, and the public to flag what is working and what needs to change. According to the Commission's own digital finance page, two separate consultations, one public and one targeted, are now open with submissions closing on August 31, 2026.

The timing is deliberate. The review comes as MiCA approaches a key transitional deadline in July 2026, after which CASPs must be fully authorized under the EU framework or cease operations. Member states were given the option to implement transitional measures allowing entities already providing crypto-asset services under national law to continue doing so until July 1, 2026, or until they are granted or refused a MiCA authorization. As of May, only 194 CASPs have received authorization, with roughly 75% of pre-MiCA registered firms expected to lose their status when that window closes.

A European Commission adviser said it would be "rather unusual" if there were not a "MiCA 2" over time, noting that EU financial legislation typically evolves in stages. MiCA already contains a built-in review clause, requiring the Commission to report on its application by June 30, 2027, with the option to accompany that review with legislative proposals if needed.

The $USDT Problem at the Centre of the Debate

The most visible friction point heading into the review is the status of $USDT. Tether has not applied for MiCA authorization, and USDT has been delisted from major EU-regulated exchanges including Coinbase, Kraken, Binance (EEA), and Crypto.com. It can still be held in self-custody and traded on decentralized exchanges, but cannot be offered by EU-licensed CASPs.

Major stablecoins like USDT remain non-compliant, forcing exchanges to delist them and fragment liquidity. While this achieves the goal of protecting consumers, it also pushes users toward offshore alternatives or restricts access to key global stablecoins. That trade-off is precisely the kind of unintended consequence the Commission will be asked to assess.

The Commission has signalled it will conduct the consultation with "no taboos," inviting market participants to identify where rules should be expanded, adjusted or left unchanged. The Commission is also examining structural modifications to supervisory architecture, including proposals to centralize oversight functions under ESMA, targeting large cryptocurrency firms with cross-border operations to improve regulatory coordination.

For crypto businesses operating in the EU, the consultation represents a rare formal opportunity to shape the next phase of regulation before the ink dries on any proposed amendments.

Sources:
European Commission: Crypto-assets (MiCA) consultation page
CoinTelegraph: EU adviser says MiCA 2 likely as crypto market matures
Scorechain: EU Stablecoin Regulation Under MiCA