ECB Seeks to Tighten MiCA Rules Amid Concerns Over Trump’s Crypto Stance

The European Central Bank (ECB) wants to revise the Markets in Crypto-Assets (MiCA) regulation, citing risks from former U.S. President Trump’s pro-crypto shift. The ECB is concerned about the competitiveness of USD stablecoins potentially dominating the European market. However, the European Commission disputes these fears, alleging that the ECB is using stablecoin-related concerns to promote a controversial digital euro program. Signs of European irrelevance to Web3 are already emerging, and additional restrictions could exacerbate this issue. MiCA, which took effect four months ago, is viewed as too lenient by the ECB. Commentators like Mikko Ohtamaa believe the EU had a first-mover advantage with crypto regulation but failed to capitalize on it, resulting in no internationally competitive EU stablecoin.