EU launches MiCA review and consultation

TLDR

The European Commission has started a formal review of the EUs MiCA crypto framework and is preparing a wide public consultation on how it should change.

1. An EU Commission adviser says MiCA will be reviewed with an open consultation and that a follow-up MiCA 2 is likely as markets evolve.
2. The review will test how MiCA works in practice, including stablecoins, CASP licensing, DeFi, NFTs, and supervision by EU watchdogs like ESMA.
3. Crypto businesses operating or targeting the EU should watch the consultation window, because its outcome will shape licensing, products, and compliance costs for years.

Deep Dive

1. What The EU Is Doing Now

At Paris Blockchain Week 2026, Commission adviser Peter Kerstens said the EU will review the Markets in Crypto Assets Regulation (MiCA) and launch a public consultation with no taboos on possible changes, including a potential MiCA 2 update to the rulebook as the market matures. A detailed explainer notes that MiCA already contains a review clause that obliges the Commission to report on its application by 30 June 2027 and to propose legislative changes if needed, reflecting the EUs staged approach to financial regulation similar to MiFID and MiFID II.

This is framed as a normal evolution rather than an admission that MiCA failed, aiming to ensure rules stay aligned with a rapidly changing market structure.

2. Likely Focus Areas In The MiCA Review

Reports highlight that the consultation will invite feedback from exchanges, custodians, wallet providers, DeFi platforms, and consumer groups on how MiCA works in the real world across all 27 member states. Focus areas are expected to include:

1. Stablecoins, especially euro and dollar tokens, where issuers like Circle have already pushed back on limits to use in settlement.
2. Licensing and supervision of large crypto-asset service providers (CASPs), including debates on whether major firms should be overseen centrally by ESMA for consistency.
3. Gaps at the edges of MiCA, such as DeFi protocols, NFTs, and environmental disclosures for consensus mechanisms, where practice has moved faster than the original text.

For EU-facing platforms, the outcome could tighten or relax requirements on reserves, disclosures, cross border passporting, and which regulator they ultimately deal with.

3. What Market Participants Should Watch Next

The consultation process is expected to start in 2026 and run for several months, after which the Commission can draft legislative proposals that would go to the European Parliament and Council.

Key signals to watch will be:

1. How hard the Commission leans into DeFi and NFT specific rules.
2. Whether large stablecoins in the EU face stricter caps or conditions.
3. If supervision for major CASPs is shifted more clearly to ESMA, which could centralize oversight.

Engaging with the consultation will be the main way industry voices can influence how burdensome or innovation friendly a future MiCA 2 becomes.

Conclusion

The MiCA review and consultation mark the start of the EUs second phase of crypto regulation, turning early implementation experience into a potentially upgraded rulebook. For crypto businesses and investors, the trajectory of stablecoin rules, CASP licensing, and DeFi treatment in this process will heavily shape how attractive the EU remains as a regulated crypto market.