EU signals arrival of MiCA 2 as crypto regulation enters next phase

The European Union’s landmark regulatory framework for crypto will almost certainly have a sequel, according to a senior European Commission adviser who reported that policymakers are already preparing to adapt MiCA as digital asset markets outgrow the terms around which the law was built.

Peter Kerstens, technology innovation advisor at the Commission’s Department of Financial Services, told participants at Paris Blockchain Week 2026 that the regulator would launch a public consultation to assess whether MiCA still corresponds to market realities. His assessment was blunt: it would be “rather unusual” if there was not ultimately a “MiCA 2”.

Integrated evolution, no emergency repair

Kerstens framed the upcoming review as routine maintenance rather than damage control. The original MiCA Regulation already contains a mandatory review clause requiring the Commission to report on its implementation by June 30, 2027, with the power to propose legislative changes if warranted.

The advisor noted that MiCA was written at a time when crypto markets looked fundamentally different: a handful of dominant assets surrounded by thousands of smaller tokens. This structure has changed and the regulatory framework must reflect current market dynamics.

“No taboos” will apply to the public consultation, Kerstens said, inviting industry players to flag areas where the rules should expand, contract or remain unchanged. His warning carries weight: If regulation doesn’t evolve alongside innovation, markets will simply circumvent existing rules, creating the legal ambiguity everyone wants to avoid.

The industry is already demanding change

The consultation will not start from scratch. Crypto companies have been testing the limits of MiCA since its implementation began, and the feedback loop is already active.

Stablecoin issuer Circle submitted recommendations to the Commission on March 24, pushing to lower the thresholds that currently restrict the use of euro-denominated stablecoins under the regulation. The company also wants expanded access to crypto-asset service providers as part of the proposed market integration package.

Meanwhile, enforcement questions remain unanswered. On April 3, EU officials debated whether supervision of major crypto companies should shift from national regulators to ESMA, the bloc’s securities watchdog. The discussion reflects ongoing concerns about inconsistent enforcement between member states – a sticking point that MiCA 2 may need to address directly.

What traders should watch out for

The review deadline of June 2027 gives the industry approximately 14 months to determine what happens next. Companies operating in the EU should closely monitor the public consultation timetable: early engagement could influence the rules that will govern European crypto markets for the next decade.

For stablecoin issuers in particular, the bottom line matters a lot. Circle’s efforts to ease settlement restrictions indicate where current rules create operational friction, and whether MiCA 2 addresses these concerns will determine how competitive euro-denominated stablecoins become compared to dollar alternatives.

The debate between centralization and national supervision also deserves attention. If ESMA gains direct oversight of major crypto firms, expect a more uniform, but potentially stricter, enforcement environment across the bloc.

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