European Commission relaxes MICA rules despite ECB warnings

Rumors suggest that the European Commission is trying to slightly relax the MICA rules on EU stubcoins. Specifically, the aim is to create unapproved stubcoins in the global market that can be exchanged for certified EU only.

The European Central Bank (ECB) vehemently opposed the proposal and instead proposed the digital Euro CBDC. It warns of risks to European bank stability, but ignoring stable growth is also dangerous.

The impact of MICA on EU stubcoins

Since MICA came into effect in December 2024, the European cryptography landscape has changed dramatically. Certainly, perhaps that has changed too dramatically.

The global Stablecoin market is intensifying, but its biggest token issuer left the EU market for MICA without suffering from business. Currently, some regulators are considering several changes.

According to reports from ReutersEuropean Commission officials may soon relax MICA requirements on Stablecoins. To be clear, the licensing process is not too strict.

Instead, when one company issues EU-specific tokens and global versions, both assets can be exchangeable for Europeans.

This may seem like a small distinction, but it already caused problems in March. Esena attempted to obtain a MICA license to issue Stablecoins for its German branch, but was denied.

Soon after that, the company left the continent entirely. If this rule changes, companies that have acquired approval for one asset will essentially be free to operate in the EU.

However, the report suggests that the ECB is having problems with its proposal. Regulators had already advocated changes to MICA rules in April, but proposed tightening the Stablecoin restrictions further.

Instead, they aimed for the “digital euro” CBDC, taking into account the way it would diverge from Trump’s policies. ECB President Christine Lagarde repeated the position on Monday.

Even if the restrictions remain the same, companies are still finding ways to skirt them. Furthermore, the ECB’s recent policy highlights the link between Europe’s decline with the global crypto market.

Assuming that loosening mica is actually dangerous, it appears that being dumped into this large industry is even more risky.

In other words, the digital euro doesn’t seem to be enough to actually address the problem. Moreover, an anonymous European Commission spokesman challenged the claims about the risks of MICA and Stablecoin.

“A drive on well-protected, fully secured, stable stubcoin is very unlikely. Even if that happens, foreign owners will redeem US (or other countries) tokens where most of the tokens are circulated and the majority of their reserves are held,” the official said. Reuters.

In short, EU Stablecoin users may soon get some real relief from Mica. If the issuer is able to acquire one token approved in Malta or another loose jurisdiction, these assets will be exchanged for those used by all others.