EU opens consultation on MiCA stablecoin rules and DeFi gaps

The European Commission has launched a public consultation to review the Markets in Crypto-Assets Regulation (MiCA) framework, seeking feedback until August 31, 2026. This initiative aims to determine if the current regulations remain fit for purpose as the market evolves, with industry observers already discussing potential updates as MiCA 2. A primary focus of the review is the classification of tokenized financial instruments, including wrapped tokens and synthetic assets, which currently face ambiguity under existing law. The Commission is also re-evaluating the prohibition on interest-bearing stablecoins and exploring new regulatory approaches for decentralized finance (DeFi) and staking. By addressing these gaps, the EU intends to clarify the boundary between crypto assets and traditional financial instruments, which is critical for the growth of the RWA sector. Major industry players like Coinbase have welcomed the review as an opportunity to shape the future of digital finance. This development is particularly significant as the EU approaches the July 2026 deadline for full authorization of Crypto Asset Service Providers (CASPs).