Launchy Regulatory Roundup #96 - EU Weighs Expanding MiCA Scope
Most EU Funds Went Self-Custody
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In Today’s Edition:
Headline: EU Weighs Expanding MiCA Scope
Global Legal Roundup
Case Study: Most EU Funds Went Self-Custody
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HEADLINE
EU Weighs Expanding MiCA Scope
State of play: The European Commission is seeking stakeholder comment through September 30 on whether MiCA needs updating to address tokenized securities and non-EU stablecoin issuers, just weeks after the framework’s grace period ended.
MiCA currently regulates stablecoins through two categories, e-money tokens pegged to single currencies and asset-referenced tokens pegged to baskets, but doesn’t directly address tokenized securities.
Tokenized stocks have grown to $2.16B onchain, up nearly 45% from last month, per RWA.xyz.
The review follows the GENIUS Act’s passage in the US, which the commission may use as a reference point for revisions.
Only 244 firms were authorized as Crypto-Asset Service Providers under MiCA ahead of July’s grandfathering deadline.
An unnamed EU diplomat said reopening the regulation appears unavoidable given pressure from institutions including the ECB.
What’s Next: Stakeholder comments are due September 30, after which the commission will decide whether to formally reopen MiCA for revision.
Why it Matters: MiCA was pitched as the world’s most comprehensive crypto framework, and revisiting it this soon signals real gaps around tokenization rather than just competitive pressure from the US.
Our Take: The timing is awkward: MiCA barely finished its grace period and regulators are already reopening the file, suggesting the framework was either rushed or tokenized securities genuinely weren’t foreseeable when it was drafted.
GLOBAL LEGAL ROUNDUP
America:
🇺🇸 White House defends Trump’s regulatory appointments.
🇺🇸 Housing bill that includes a CBDC ban passed into law.
🇺🇸 Circle wins final OCC approval to open national trust bank.
🇺🇸 SEC plans crypto rule changes for exchanges and broker dealers.
🇺🇸 70% of EU withdrawals went to self-custody after MiCA deadline.
🇺🇸 Polymarket files applications to offer regulated margin trading in US.
🇺🇸 Sony Bank gets conditional OCC approval to issue dollar-backed stablecoin.
🇺🇸 HPC, Phantom urge CFTC to stop treating protocols like brokers, exchanges.
🇺🇸 N.Carolina passes bill recognizing CFTC preemption over prediction markets.
Europe:
🇪🇺 EC looks to expand MiCA to cover tokenization, stablecoin issuers.
🇬🇧 UK Labour MPs push to permanently ban crypto political donations.
APAC:
🇭🇰 HK SFC orders crypto platforms, online brokers to phase out OTP logins.
🇮🇳 India CB seeks to bar financial institutions from exposure to crypto assets.
CASE STUDY
Most EU Funds Went Self-Custody
State of play: Binance co-CEO Richard Teng said 70% of EU user withdrawals following the exchange’s service suspension moved to self-custodied wallets rather than MiCA-licensed rivals.
Binance suspended EU services after withdrawing its Greek MiCA license application ahead of the July 1 licensing deadline.
Teng said assets in self-hosted wallets fall outside the AML, KYC, and oversight controls that apply to regulated exchanges.
CZ previously told The Block the application was near approval before “political forces” intervened, prompting the withdrawal.
Several EU jurisdictions have invited Binance to apply for local licenses, though Teng declined to name them.
Binance now serves about 323 million users globally and plans aggressive expansion across Asia.
Our Take: MiCA-licensed exchanges should treat this as a customer acquisition signal, the withdrawal window is exactly when displaced users are most receptive to onboarding, if the friction can be minimized.
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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.