In Reaction to the US GENIUS Law and the Emergence of Stablecoins, Brussels is Revising the MiCA

Europe is moving backward. Three years after MiCA, its crypto framework is already obsolete. Brussels is trying to catch up with the dominance of dollar-backed stablecoins and the US GENIUS law. But is there still time to avoid the exodus of platforms and the reign of the dollar?

The Emergence of Stablecoins Causes MiCA to be Revised

The European Commission has officially started revising MiCA, its crypto regulatory framework, facing two major challenges: the explosion of stablecoins and the US GENIUS law. MiCA was implemented in 2023 to regulate spot cryptos, but it struggles to adapt to the evolving financial sector. Meanwhile, stablecoins divert billions of euros and threaten the stability of the banking system. In the United States, the GENIUS law accelerated this trend by allowing stablecoin issuers to keep their reserves in US public debt. This strengthens the dollar as the dominant currency.

On its side, the EU still requires stablecoin issuers to deposit their reserves in the traditional banking system, a measure considered too restrictive by industry players. Consequently, euro stablecoins, including EUROC, struggle to compete with USDC or USDT. With MiCA 2.0, Brussels aims to broaden its scope to include stablecoins and tokenization, but time is running out… Already, crypto platforms are fleeing to friendlier jurisdictions, far from Europe.

Giants Profit while Hundreds of Crypto Platforms are Lost in Europe

As of July 1, 2026, ESMA published the official list of 244 MiCA-authorized crypto platforms out of the 3,389 previously registered, that are authorized to operate within the EU. Binance, which failed to obtain its license on time, has suspended its services for European residents. This situation caused a massive influx of users to compliant platforms such as Kraken and OKX, who are currently running aggressive campaigns to attract these new customers.

Moreover, some European startups are considering moving part of their operations to Switzerland or Singapore, where regulations are more flexible. Europe is thus increasingly losing its market share in stablecoin exchanges to the United States and Asia, due to its strict regulation. MiCA, intended to protect crypto investors, risks killing European innovation.

The EU is racing against the clock. Without an ambitious MiCA 2.0, its crypto market risks disappearing. But Brussels will have to choose between investor protection and competitiveness. Especially right now as the Bank of France demands a tightening of MiCA rules.