Blockchain for Europe has issued a report urging targeted reforms to the EU's Markets in Crypto Asset Regulation (MiCA), arguing that the current framework stifles the competitiveness of euro-denominated stablecoins. While MiCA ensures safety, it inadvertently favors US-pegged stablecoins, which dominate the market.

Euro stablecoins account for less than 1% of global stablecoin volume—a stark underperformance given the euro's broader role in global finance. The group warns that excessive regulation risks driving projects to more accommodating jurisdictions, undermining the EU's regulatory objectives.

The report emphasizes the need for balanced rules that foster both compliance and domestic industry growth. Without reform, the EU risks ceding further ground to dollar-dominated alternatives in the $150 billion stablecoin market.