Close Menu
    Facebook X (Twitter) Instagram
    • Privacy Policy
    • Terms Of Service
    • Social Media Disclaimer
    • DMCA Compliance
    • Anti-Spam Policy
    Facebook X (Twitter) Instagram
    Block AI Report
    • Home
    • Crypto News
      • Bitcoin
      • Ethereum
      • Altcoins
      • Blockchain
      • DeFi
    • AI News
    • Stock News
    • Learn
      • AI for Beginners
      • AI Tips
      • Make Money with AI
    • Reviews
    • Tools
      • Best AI Tools
      • Crypto Market Cap List
      • Stock Market Overview
      • Market Heatmap
    • Contact
    Block AI Report
    Home»Crypto News»DeFi»EU Reviews Stablecoin Interest Ban in Potential MiCA Overhaul
    Cointelegraph
    DeFi

    EU Reviews Stablecoin Interest Ban in Potential MiCA Overhaul

    May 20, 20263 Mins Read
    Share
    Facebook Twitter LinkedIn Pinterest Email
    changelly


    The European Commission has opened a review of its landmark crypto regulation, signaling that the European Union is considering updates to its landmark digital asset framework just two years after it took effect.

    The commission on Wednesday launched a public consultation seeking feedback from the crypto industry and the wider public on whether the EU’s Markets in Crypto-Assets Regulation (MiCA) should be updated. The consultation will remain open until Aug. 31.

    The commission said crypto markets and the global regulatory environment have “continued to evolve” since MiCA took effect in 2024, prompting officials to assess whether the current framework remains “fit for purpose.”

    The move marks an important regulatory development in the EU, with some industry observers already referring to potential future updates to the framework as “MiCA 2.”

    murf

    Stablecoin interest ban included in regulatory review

    The targeted consultation under MiCA is a detailed questionnaire designed to assess how the regulation is functioning in practice and where adjustments may be needed.

    It seeks feedback on ongoing classification challenges, particularly the blurred boundary between crypto assets and traditional financial instruments under EU law, including wrapped tokens, synthetic assets and tokenized fund interests.

    A key focus is stablecoins, including a reassessment of MiCA’s prohibition on interest or interest-like remuneration. The commission is asking whether this restriction should be maintained or revised, alongside broader questions on reserve requirements, liquidity management, redemption rights and the thresholds used to determine “significant” tokens.

    An excerpt from the targeted consultation on the MiCA review. Source: EC

    Beyond stablecoins, the consultation also examines emerging risk areas, including decentralized finance (DeFi), staking, lending, non-fungible tokens, and crypto asset service providers (CASPs), as well as issues around market integrity, investor protection and potential simplification of compliance rules.

    Related: Euro stablecoin project Qivalis adds 25 banks ahead of launch

    The inclusion of DeFi and tokenized financial assets is particularly notable as both areas remain largely outside MiCA’s scope.

    EU probes whether consumers actually trust crypto

    The public consultation document shows the commission is not only reviewing whether MiCA works as a legal framework, but also whether ordinary consumers understand and trust digital assets under the new rules.

    Many of the questions focus on user awareness of Bitcoin (BTC), Ether (ETH), stablecoins, DeFi and tokenized assets.

    An excerpt from the public consultation on the MiCA review. Source: The EC

    It also explores what would increase consumer confidence in crypto services, including stronger protections, clearer rules, improved supervision and easier access through regulated banks and payment providers.

    The review comes as MiCA approaches a key transitional deadline in July 2026, after which CASPs must be fully authorized under the EU framework or cease operations.

    Magazine: How crypto laws changed in 2025 — and how they’ll change in 2026



    Source link

    bybit
    Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
    Crypto Expert
    • Website

    Related Posts

    Echo Protocol Hacked for $76.7M in Admin Key Exploit

    May 19, 2026

    Aave Restores Wrapped Ether Borrowing Following Kelp DAO Hack

    May 18, 2026

    THORChain Opens Refund Portal After $10M Hack

    May 16, 2026

    THORChain Halts Trading After ZachXBT Flags $10M Exploit

    May 15, 2026
    Add A Comment

    Comments are closed.

    notion
    Latest Posts

    South Korean Funeral Company Faces $33M Unrealized Loss on Leveraged Ether ETFs

    May 20, 2026

    TSX Today: What to Watch for in Stocks on Wednesday, May 20

    May 20, 2026

    Bitcoin Traders Target $68K As Key Support Zone: Here’s Why

    May 20, 2026

    Google’s new AI agent can draft your emails, monitor your inbox and eventually spend your money

    May 19, 2026

    Clarity Act Hits Senate Floor

    May 19, 2026
    quillbot
    LEGAL INFORMATION
    • Privacy Policy
    • Terms Of Service
    • Social Media Disclaimer
    • DMCA Compliance
    • Anti-Spam Policy
    Top Insights

    Building AI models that understand chemical principles | MIT News

    May 20, 2026

    Bitcoin’s Social Euphoria Hits Annual Peak Due To CLARITY Act, But History Says Caution Is Warranted

    May 20, 2026
    aistudios
    Facebook X (Twitter) Instagram Pinterest
    © 2026 BlockAIReport.com - All rights reserved.

    Type above and press Enter to search. Press Esc to cancel.