Europe’s crypto industry is preparing for the next phase of regulation as the European Commission gathers feedback on potential updates to its landmark Markets in Crypto-Assets (MiCA) framework.
The proposed changes, widely referred to as MiCA 2.0, are expected to focus on areas that were only partially addressed in the original legislation, including stablecoins, decentralized finance (DeFi), tokenization, and prediction markets.
Stablecoins Take Center Stage
One of the biggest discussions revolves around stablecoin regulation.
Industry participants are calling for rules that make euro-backed stablecoins more competitive by allowing greater flexibility in reserve management and introducing incentives such as cashback and loyalty rewards.
Regulators, however, are also examining how stablecoins should be supervised as they evolve from trading tools into broader payment and settlement infrastructure.
DeFi Could Receive Its First Clear Framework
MiCA currently excludes fully decentralized protocols from its scope.
Under MiCA 2.0, regulators are exploring how to define decentralization and determine when DeFi platforms should fall under regulatory oversight. Issues such as governance, protocol control, and user protection are expected to play a major role in future rules.
Prediction Markets Under Review
The European Commission is also evaluating prediction markets and whether they should be regulated under crypto laws, financial market rules, or separate frameworks altogether.
The goal is to create clearer guidelines while balancing innovation with consumer protection.
What Happens Next?
The public consultation remains open until August 31, after which the Commission will review feedback from industry participants and regulators.
While any major legislative update may still take several years, MiCA 2.0 is already shaping up to be the next major chapter in Europe’s evolving crypto regulatory landscape.
