European Union · Donald Trump · Tokenization · The Block
European Commission looks to expand MiCA to cover emergence of tokenization, non-EU stablecoin issuers: report
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The European Union is looking to revise its Markets in Crypto-Assets Regulation (MiCA) about a week after the landmark crypto rules went into full effect, according to euronews.
Key facts
- There are many different types of tokenized stocks, including tokenized stocks that mirror a security and are backed 1:1 by the underlying asset, as well as tokens that are themselves securities
- Ahead of July’s grandfathering period, 244 firms were authorized as Crypto-Asset Service Providers (CASPs) under MiCA
- The European Commission is reportedly seeking comment from stakeholders until Sept
- E-money tokens follow similar requirements to U.S. payments stablecoins, requiring 100% reserve backing in safe assets and prohibitions against paying yield
Summary
The European Commission is reportedly seeking comment from stakeholders until Sept. 30, as it gauges whether to expand the rules to encompass emerging technologies like tokenization and non-EU stablecoin issuers, euronews reported, citing several anonymous sources with knowledge of the situation. MiCA is the EU's comprehensive regulatory framework that creates uniform rules across the bloc for crypto-asset issuance, trading, custody, and other services. The commission is reportedly looking to revise MiCA in light of developments since the rules were written, including the emergence of tokenized securities, which several EU- and non-EU-based crypto exchanges are beginning to offer, as well as the continuing adoption of stablecoins.