The European Banking Authority (EBA) and the European Central Bank (ECB) have submitted formal input to the European Commission on the review of the Markets in Crypto-Assets Regulation (MiCA), kicking off a policy process that could reshape the European Union's crypto rulebook well before its next scheduled checkpoint.

The submissions, detailed in an analysis by the law firm Freshfields, arrive as Brussels begins examining how the regulation has performed since its phased application began. MiCA's stablecoin provisions took effect in June 2024, with the broader licensing and market-abuse framework following for crypto-asset service providers (CASPs) at the end of December 2024.

Both authorities flagged substantive concerns. The EBA, which supervises issuers of asset-referenced tokens (ARTs) and e-money tokens (EMTs) alongside national competent authorities, focused on areas where the regulation's text has created friction in practice. The ECB, for its part, weighed in on questions touching monetary policy and payment-system implications, reflecting its statutory role in commenting on initiatives that could affect the euro's role and the functioning of payment markets.

The review carries operational weight for licensed firms. Any move to amend MiCA would reopen settled questions on authorization scope, passporting rights across the 27-member bloc, and the division of supervisory responsibility between the EBA, the European Securities and Markets Authority (ESMA) and national regulators. CASPs that structured their compliance programs around the current text would face adjustment costs if the Commission proposes legislative amendments.

For stablecoin issuers, the stakes are concrete. MiCA caps daily transaction volumes for e-money tokens denominated in currencies outside the euro and limits the share of holdings an issuer can hold per payment account, constraints that operators have already lobbied against. The EBA's input to the review suggests supervisors see room to recalibrate these thresholds, though any change requires a full legislative amendment through the European Parliament and Council rather than a technical fix.

The review process itself follows the regulation's built-in mandate. MiCA requires the Commission to report on its application and effects, a provision that Brussels is now activating. The timing matters: industry groups and member-state regulators, including France's AMF and Germany's BaFin, have publicly called for adjustments ranging from DeFi treatment to third-country firm access, and the EBA and ECB submissions set the supervisory community's early position in what will become a negotiation among institutions.

Freshfields' analysis highlights that the two authorities approached the review from distinct mandates. The EBA speaks as a direct supervisor and rule-setter for token issuers, with binding technical standards already issued under MiCA. The ECB speaks as a central bank concerned with monetary sovereignty, the international role of the euro and the resilience of payment infrastructure. Their overlapping but distinct perspectives will shape how the Commission frames any legislative proposal.

For compliance teams, the immediate practical question concerns sequencing. A Commission report does not itself change the law. Firms must continue operating under the existing framework — including the EBA's technical standards on own funds, complaint handling and recovery/redemption disclosures — while tracking which review recommendations gain traction in Brussels.

The likely timeline runs through 2025 and into 2026, with any formal amendment proposal requiring co-legislation. Until then, the operative risk is divergence: national authorities applying MiCA unevenly while the review proceeds, and firms building pan-European operations on rules that may yet shift. Market participants should expect the Commission's review report to land as the next concrete milestone, framing which of the EBA's and ECB's recommendations translate into draft legislation.