EU Weighs Easing MiCA Rules for Stablecoins Amid ECB Pushback

The European Commission is reportedly considering a key adjustment to its MiCA regulation—one that could offer crypto firms a more flexible path to operating stablecoins within the EU. While the proposed change wouldn't loosen licensing standards, it would allow companies to offer both EU-approved and global versions of their stablecoins interchangeably to European users.

This potential shift follows months of tension surrounding the bloc's strict crypto rules. Since the Markets in Crypto-Assets (MiCA) regulation took effect in December 2024, it has significantly reshaped the European crypto environment—attracting scrutiny from all sides.

A report from Reuters suggests that the Commission may soon green-light this interoperability tweak. The goal is to address market friction without compromising MiCA’s core standards. The distinction sounds subtle, but it's already caused tangible consequences. In March, stablecoin issuer Ethena failed to secure a MiCA license for its German branch. Shortly after, the company exited the European market entirely.

Under the anticipated change, firms licensed to issue a stablecoin in one EU member state—such as Malta, where regulations are seen as comparatively lenient—could treat that token as equivalent to its global version within the bloc. That could restore some competitiveness to the EU’s position in the stablecoin market.

Not everyone’s on board, though.

The European Central Bank (ECB) has voiced strong opposition. It argues that even minor concessions could pose risks to the financial system, especially if private stablecoins crowd out traditional banking products. ECB President Christine Lagarde has been vocal about her preference for a central bank digital currency (CBDC)—the so-called digital euro—as a more stable, state-controlled alternative to private tokens.

Back in April, the ECB even proposed tightening MiCA’s stablecoin rules further. Monday’s comments from Lagarde reaffirmed that stance, with officials framing the digital euro as a strategic counterweight to growing U.S. crypto influence.

However, critics point out that Europe's rigid regulatory stance might be pushing innovation out of the region. Despite MiCA’s intent to provide regulatory clarity, the biggest global stablecoin issuer exited the EU market after the rules kicked in—without any visible hit to its business.

A European Commission spokesperson pushed back on fears of a destabilizing stablecoin run, telling Reuters:

“A run on a well-governed and fully collateralized stablecoin is very unlikely. Even if it were to happen, foreign holders would redeem their tokens in the US or other countries where the majority of the tokens circulate and the majority of the reserves are held.”

As Europe continues to fine-tune its crypto rulebook, the debate over control, competitiveness, and innovation is far from settled. Whether easing MiCA’s implementation will attract issuers back—or whether the ECB will stand firm on its digital euro vision—remains to be seen.