ECB Pushes for MiCA Overhaul Amid U.S. Stablecoin Threat

The European Central Bank (ECB) is calling for a revision of the European Union's Markets in Crypto-Assets (MiCA) regulation, citing concerns that growing U.S. support for stablecoins could harm the eurozone economy, Politico reported. This request comes just months after MiCA's full implementation, highlighting rising tensions between the ECB and the European Commission.

According to a leaked policy document, the ECB believes U.S. legislation such as the STABLE Act and the GENIUS Act could drive mass adoption of dollar-backed stablecoins, potentially ballooning the sector to $2 trillion within three years. The bank warned that this could significantly undermine the euro’s monetary sovereignty and financial stability across the 27-nation bloc.

The ECB presented its concerns during an April 14 meeting with top EU government officials. However, the proposal to swiftly amend MiCA received limited support. One diplomat said few countries backed the idea of "jumping the gun" on rule changes solely based on the U.S. trajectory.

Meanwhile, the European Commission pushed back against the ECB's alarm, arguing that it’s too early to assess the U.S. impact. It noted that only one global stablecoin has been authorized under MiCA so far—Circle’s USDC, which received the first official EU license last July.

The Commission maintained that current regulations are sufficient to manage risks associated with global stablecoins and that concerns raised by the ECB appear overstated. As the U.S. moves to solidify its stablecoin framework, EU regulators now face growing pressure to reassess their crypto stance to safeguard economic autonomy.