Reg Wrap: crypto urges caution after EBA and ESCB call for tougher MiCA rules - TheBanker.com

European banking supervisors have signalled that the EU's Markets in Crypto-Assets (MiCA) framework may need tightening. According to TheBanker.com, both the European Banking Authority (EBA) and the European System of Central Banks (ESCB) have called for tougher rules, prompting pushback from parts of the crypto industry, which urges caution over the pace and scope of any changes.

The development matters because MiCA was designed to give crypto firms a single, harmonised licensing regime across the EU. If supervisors succeed in hardening requirements — particularly around prudential standards, stablecoin reserves, or links between crypto and traditional banking — compliance costs could rise and the framework's appeal as a predictable passport may be tested.

For market observers, the key question is how EU legislators reconcile supervisory concerns with the goal of regulatory clarity. Watch for formal legislative proposals, consultation timelines, and whether the debate shifts from technical standards toward broader questions about banking-sector exposure to crypto. The outcome could shape where crypto firms choose to base operations in Europe.