🔴 MiCA EU has not approved a single asset-referenced token over two years
Two years after the MiCA rules for cryptocurrencies in Europe took effect, no company has received approval to issue an asset-referenced token (ART). These ART, designed as stablecoins backed by a basket of assets such as currencies or gold, were a direct response to the Libra project from Facebook. The current framework requires issuers to hold substantial reserves and imposes strict limits on transaction volume and daily payments, effectively stifling innovation before it even begins. Patrick Hansen, Director of Strategy and Policy at Circle, calls the empty register a "structural failure," urging regulators to either adjust the rules or abandon this category altogether. Meanwhile, the market for commodities-backed tokens such as Tether Gold and PAX Gold continues to thrive outside the EU’s jurisdiction, highlighting clear demand that MiCA cannot meet. The European Commission’s consultation on revising MiCA ends on August 31, and a decision on the ART framework is expected by mid-2027. Fixing the rules for commodity tokens while preserving restrictions on currency baskets could be the way to attract the first applicant.
📊 Minimal immediate impact on the market, but ongoing lack of regulatory clarity in the EU may drive innovation and the issuance of stablecoins to other jurisdictions, potentially affecting the future share of the European market.
Should Europe abandon its failing ART rules or fix them? What is the real reason for the lack of interested parties? 👇
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