MiCA has established itself as the world’s first comprehensive crypto rulebook and a cornerstone of Europe’s regulatory landscape, even as it marks a year since its rollout and more than 100 firms have been authorised as crypto asset service providers. Yet the framework remains far from perfect. Uncertainty over MiCA’s future supervisory oversight, plus unclear guidelines and burdensome requirements, risks stifling innovation. If MiCA is to become one of the globe’s most robust regulatory regimes, policymakers must fix its drawbacks, incorporate industry feedback, and provide clarity while considering how supervision might be organized in a future MiCA 2.0.
ESMA has signalled its intent to take over centralised supervision of all CASPs, a move that has drawn contrasting reactions across the EU. Regardless of the supervisory body, regulators must incorporate industry feedback to ensure guidance is practical. Greater clarity is also needed on MiCA’s scope, particularly as new use cases such as tokenised real-world assets, staking, and yield-bearing products emerge.
MiCA 2.0 should define the boundary between MiCA and broader frameworks for payments and investment services, including PSD and MiFID. Stablecoins will play a central role in future payments infrastructure, so MiCA must provide clear rules on their use and issuance. The regime should address multi-issuance models, redemption responsibilities, and reserve standards to address risks as Euro-denominated stablecoins grow. If Europe intends to preserve its regulatory leadership, MiCA 2.0 must deliver clear, proportionate rules applicable across all member states, and policymakers should allow time for durable solutions rather than quick, ad hoc changes that could undermine competitiveness.
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