EU plans to amend MiCA regulation! May unban non-EU stablecoins like USDT, expand DLT tokenization market cap limit to 100 billion euros.

Europe's crypto regulatory framework is about to undergo a major shift! According to foreign media reports, the European Commission is considering expanding the scope of the MiCA regulation and has launched a public consultation lasting until the end of August this year. The reform focuses on relaxing the cap for DLT tokenized markets to 100 billion euros, and re-examining the blanket ban on "non-EU stablecoins" (such as USDT), with plans to introduce an equivalence regime as a solution. This move aims to enhance the competitiveness of the EU market and avoid being marginalized in the global digital asset race.

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• Stablecoin ban relief on the horizon? Equivalence regime proposed
• Expanding DLT pilot, tokenized asset cap soars to €100 billion
• Countering US competition, comprehensive review of DeFi and staking rules

As the transitional period for MiCA (Markets in Crypto-Assets Regulation) officially ends on July 1, 2026, all crypto asset service providers (CASPs) operating in the EU face the severe challenge of full compliance. However, against the backdrop of intensifying global competition, this regulatory framework, hailed as the world's strictest crypto regulation, seems to have recognized its potential harm to market liquidity.

According to The Block, the European Commission is actively pushing for an expansion and review of the MiCA framework, and has launched a public consultation that will run until August 31, 2026. Authorities are reassessing whether this regulation can adapt to the rapidly evolving digital asset market. The two focal points attracting the most market attention are "the relaxation of tokenized financial instruments" and "the relief of non-EU stablecoin regulatory policies."

Stablecoin ban relief on the horizon? Equivalence regime proposed

Since MiCA's stablecoin rules took effect in 2024, strict issuance and reserve requirements have forced globally dominant non-EU stablecoins like Tether (USDT) to be delisted from major European exchanges, severely impacting local market liquidity and trader convenience.

To salvage competitiveness, the European Commission is discussing whether to introduce an "Equivalence" regime for non-EU stablecoins. If a third country's regulatory framework is deemed equivalent to MiCA standards, it could allow those stablecoins to be relisted in the EU or engage in multi-issuance collaborations with EU entities. Although the European Central Bank (ECB) remains cautious, concerned about reserve outflows and "dollarization" risks, the Commission is striving to balance risk prevention with attracting global capital.

Expanding DLT pilot, tokenized asset cap soars to €100 billion

Beyond the shift in stablecoin policy, the EU is also eyeing the vast opportunities in traditional financial tokenization. According to the latest reform direction, authorities plan to significantly expand the scope of the DLT (Distributed Ledger Technology) pilot regime. In the future, tokenized products will no longer be limited to traditional stocks, bonds, and fund shares, but will also cover complex structured financial products.

In terms of trading scale, the EU intends to boldly remove the trading volume cap for individual tokenized products and raise the total market value cap for DLT to €100 billion. Additionally, authorities will encourage extensive use of euro stablecoins (EMT) as settlement assets in infrastructure, thereby strengthening the euro's monetary sovereignty and real-world use cases in the Web3 era.

Countering US competition, comprehensive review of DeFi and staking rules

Facing a gradually more friendly regulatory stance in the US, this EU review also covers emerging areas such as DeFi (Decentralized Finance), crypto lending, staking, and NFTs. In line with the "Draghi Report," aimed at enhancing EU competitiveness, the European Commission is also considering further simplifying administrative burdens for businesses, and even exploring the possibility of establishing a single EU supervisory body (similar to the US SEC) to centrally manage crypto exchanges.

As 2026 becomes the critical watershed for EU crypto regulatory implementation, these reforms targeting DLT and stablecoins are expected to complete the legislative process between 2026 and 2027. This not only benefits traditional banking alliances in issuing compliant euro stablecoins, but if global stablecoins like USDT successfully obtain equivalence recognition, it could also inject massive liquidity back into the parched EU market. Whether the EU can find the perfect balance between "high-pressure compliance" and "market competitiveness" will determine its historical position in the future global digital economy landscape.