EU seeks MiCA 2.0 feedback on stablecoins, DeFi and prediction markets

The European Commission's MiCA 2.0 consultation could reshape how stablecoins, DeFi protocols and prediction markets operate across the 27-nation bloc.

The European Commission opened a comment period in May for MiCA 2.0 revisions, seeking feedback on stablecoin reserve rules, DeFi platform certification and prediction market classification across the 27-nation bloc.

"Refinements could help ensure the framework remains competitive in the next phase of digital asset regulation," Katie Harries, director and head of policy for Europe at Coinbase, said.

The consultation is split into four parts: regulatory scope for crypto assets, requirements for e-money token and asset-referenced token issuers, the legal framework for crypto-asset service providers, and topics MiCA 1.0 did not cover, including DeFi and prediction markets. The comment period closes Aug. 31.

The outcome will determine whether euro-denominated stablecoins can offer rewards, whether CASPs must vet DeFi platforms before connecting clients, and whether prediction markets fall under MiCA or the Markets in Financial Instruments Directive — decisions that could take until 2028 to finalize, according to Miroslav Đurić, a senior associate at Taylor Wessing.

Stablecoin rules draw industry scrutiny

Part 2 of the consultation, covering stablecoins, is "the longest and arguably the most politically charged section," Catarina Veloso, director of regulatory and compliance at Notabene, said. How regulators classify stablecoins — as crypto trading instruments or payment infrastructure — will determine whether the focus remains on investor protection or expands to redemption, liquidity, reserve management and operational resilience.

Coinbase wants MiCA 2.0 to "make euro stablecoins more competitive by recalibrating rules around reserves, rewards and the multi-issuance model," Harries said. Allowing a greater share of stablecoin reserves in high-quality sovereign assets could reduce risk without compromising safety, she added.

Currently, e-money token issuers are prohibited from offering interest. Veloso said this "can weaken the competitiveness of euro-denominated stablecoins and push users either toward foreign-currency stablecoins or toward yield structures outside the regulated perimeter." Harries said MiCA should permit non-interest incentives such as cashback and loyalty programs, which are standard across payments.

DeFi and prediction markets enter regulatory scope

MiCA currently exempts fully decentralized CASPs, but the commission is exploring how to assess whether a project qualifies. "Decentralisation is rarely binary," Veloso said. Regulators must determine which indicators matter: control over the protocol, governance rights, admin keys, front-end control, revenue capture or upgradeability.

Many CASPs already connect clients with DeFi platforms, Đurić said. Since these platforms are exempt from MiCA, regulators are asking whether CASPs should conduct due diligence on DeFi platforms they make accessible. The commission may explore a certification regime for DeFi platforms.

Prediction markets also lack a unified regulatory structure in the EU and are banned in some member states. The commission is seeking comments on whether they offer economic benefits and whether they fall under MiCA or MiFID II. Đurić said the answer depends on the nature of the contracts, with platform operators potentially facing conflicting frameworks ranging from MiFID II to gambling regulation.

Malta's Financial Services Authority opened its own DeFi consultation on June 12, proposing a new legal category for "software-based organizations" that would encompass DAOs and other code-governed entities. The MFSA noted that MiCA excludes fully decentralized models but argued many DeFi projects retain centralized features that complicate claims of decentralization.

The comment period for the EU consultation ends Aug. 31. Đurić said concrete legislative proposals are unlikely before 2028.

This article is for informational purposes only and does not constitute investment advice.