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European Commission Opens Targeted Consultation on MiCA Review, Deadline 31 August 2026

On 20 May 2026, the European Commission launched a targeted consultation assessing whether the Markets in Crypto-Assets Regulation (MiCA) remains fit for purpose. The consultation covers decentralized finance, stablecoin scope, interplay with PSD3, cybersecurity, and cross-border equivalence for third-country crypto-asset service providers. Responses are due by 31 August 2026.

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The European Commission published a targeted consultation document on 20 May 2026, opening a public review of the Markets in Crypto-Assets Regulation, Regulation (EU) 2023/1114 (MiCA). The consultation is a statutory exercise required under Articles 140 and 142 of MiCA. Its outcomes may include a report to the European Parliament and Council and, if warranted, a legislative proposal to amend MiCA. The comment deadline is 31 August 2026.

Articles 140 and 142 of MiCA require the Commission to assess MiCA's application and relevant market developments and report to the European Parliament and Council within three years of full application. MiCA became fully applicable to crypto-asset service providers and issuers of asset-referenced tokens on 30 December 2024. The consultation document solicits feedback on MiCA's scope relative to decentralized finance protocols, non-fungible tokens, and asset-referenced tokens tied to commodities, as well as on the adequacy of third-country equivalence provisions.

Crypto-asset service providers (CASPs) authorized under MiCA, issuers of e-money tokens and asset-referenced tokens, and DeFi protocol operators with EU-facing user bases should all monitor this review. The Commission is specifically asking whether prudential requirements for CASPs should be recalibrated and whether the interplay between MiCA and the revised Payment Services Directive (PSD3) needs clarification. Any legislative amendment arising from this consultation would require co-decision by the European Parliament and Council, likely on a 2027 to 2028 timeline.

This consultation runs separately from the ongoing ESMA technical standards program, which continues under the existing MiCA text without modification. In April 2026, ESMA issued a statement confirming that grandfathering arrangements for previously exempt service providers have expired in all member states, meaning firms that operated under transitional provisions must now hold full CASP authorization or cease regulated activities. The consultation also does not suspend or modify the MiCA transitional periods already in force.

Licentium advises on MiCA authorization, regulatory strategy, and engagement with EU supervisory and legislative processes. We assist CASPs, token issuers, and DeFi operators in preparing consultation responses and monitoring the MiCA review for amendments that affect their businesses. Work we undertake includes CASP licensing, MiCA compliance gap analysis, consultation response drafting, regulatory mapping across EU jurisdictions, and ongoing supervisory liaison.

Source: Targeted Consultation on the Review of Regulation on the Markets in Crypto-Assets (MiCA), European Commission, 20 May 2026

Crypto Regulatory

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