On 20 May 2026, the European Commission published a targeted consultation on the review of the Markets in Crypto-Assets Regulation (“MiCA”). Although MiCA has only been fully applicable since 30 December 2024, the Commission is already assessing whether the framework remains fit for purpose as traditional financial institutions and asset managers increasingly move into crypto-assets, tokenised assets and DLT-based financial markets. The consultation also forms part of the Commission’s simplification agenda to reduce regulatory burdens and support EU competitiveness.
The consultation asks whether crypto-assets qualifying as financial instruments under MiFID should continue to be governed by sectoral legislation, or whether all assets recorded on distributed ledgers should fall under MiCA. Tokenised fund interests, tokenised money-market instruments and other hybrid structures are highlighted as difficult cases.
Key questions include whether capital requirements for issuers are appropriately calibrated, whether the prohibition on granting interest on stablecoins should be modified, and whether MiCA should introduce an equivalence regime for global stablecoins. Notably, no asset-referenced tokens have been licensed in the EU under MiCA after nearly two years.
Approximately 170 CASPs are now listed in the ESMA register across 18 Member States. The consultation considers whether the prudential regime should be adjusted, for example by aligning it with the K-factor regime for investment firms.
The consultation also addresses areas not yet directly regulated. On DeFi, it asks whether CASPs should conduct due diligence over protocols they connect clients with and whether certification schemes for smart contracts are warranted. It examines whether staking, lending and borrowing require dedicated regulation, whether NFT service providers should be regulated, and whether prediction markets and perpetual futures belong under MiFID or MiCA.
A significant section focuses on the legal treatment of tokens including ownership, custody, collateral, insolvency and enforceability and whether EU-level harmonisation is needed to support tokenisation markets.
The review suggests the EU is moving beyond viewing MiCA purely as a crypto framework, increasingly considering how digital assets and on-chain infrastructure intersect with mainstream capital markets. Responses must be submitted by 31 August 2026 via the Commission’s online questionnaire, with a report due to the European Parliament and Council by 30 June 2027.
For further information, please contact any member of our Digital Assets and Fintech team.
