The European Union is preparing to revise its Markets in Crypto-Assets Regulation (MiCA) in 2027, aiming to close regulatory gaps for crypto-asset issuances originating from non-EU jurisdictions.
The overhaul will also expand the framework to encompass emerging technologies, according to several EU diplomats familiar with the plans.
The regulatory update comes as the political landscape for digital assets shifts in the United States, where President Donald Trump has signaled strong support for stablecoins.
This divergence in transatlantic policy approaches is prompting European regulators to reassess the extraterritorial reach of their rules to prevent regulatory arbitrage.
The move to tighten oversight of non-EU issuers adds another layer of complexity to the EU's broader digital strategy.
It follows recent domestic fiscal debates, including a provision in the German government's draft budget that could eliminate the current tax exemption for cryptocurrency holdings kept for more than one year.