🇪🇺 Brussels Opens the MiCA Rewrite

The European Commission just launched a formal review of its landmark crypto rulebook, and the consultation runs through August 31. The signal is clear: MiCA 2.0 is on the table, and every major provision is up for discussion.

🔹 What's Under Review
The consultation targets three explosive areas. First, the stablecoin interest ban that forced USDT off EU exchanges and fragmented liquidity across the bloc. Second, DeFi oversight that the original framework largely excluded. Third, classification gaps where wrapped tokens and tokenized funds sit in regulatory limbo. The Commission has described the review as proceeding "without taboos".

🔹 The Timeline Squeeze
The review arrives just weeks before the July 1 deadline when CASPs must hold full MiCA authorization or cease operating in EU markets. As of May, only 194 CASPs have received authorization, with roughly 75% of pre-MiCA registered firms expected to lose their status when that window closes. Firms are scrambling to comply with existing rules while the ground rules may shift beneath them.

🔹 The Global Context
The US advanced the CLARITY Act out of committee. Hong Kong, UAE, and other jurisdictions built their own frameworks. MiCA was the first mover, but the regulatory race has accelerated. Brussels is now asking whether its rulebook keeps Europe competitive.

🔹 Coinbase's Take
"We support targeted improvements to ensure Europe can combine its strong safeguards with global competitiveness, not a reopening of first principles," said Katie Harries, Coinbase's head of European policy. The industry wants sharpening, not scrapping.

Bottom Line
The EU opened MiCA for public review, targeting stablecoin rules, DeFi gaps, and classification blind spots. Feedback closes August 31. The stablecoin interest ban, the provision that pushed USDT offshore, faces its most serious challenge yet. MiCA was the world's first comprehensive crypto framework. Whether it remains the gold standard or gets overhauled depends on the next 102 days.

Friends, should the EU scrap the stablecoin interest ban entirely, or does protecting depositors justify keeping it?