Opinion: MiCA brings clarity, but stablecoin restrictions need to be improved

Jason Allegrante, Chief Legal and Compliance Officer at Fireblocks, posted that the European Union's Crypto Asset Market Regulation (MiCA), which will be implemented this summer, is an important milestone for the crypto industry. While the MiCA wisely excludes decentralized smart contracts and NFTs, there are problems with the issuance and trading restrictions on stablecoins such as USDT, USDC, and BUSD. The current limit of 1 million transactions or 200 million euros is nowhere near enough to support the current level of activity. The total global stablecoin market cap is $162 billion, of which 75% is USDT, USDC, and BUSD. These restrictions by the European Union could cause significant disruption to the crypto ecosystem, especially with regard to non-speculative use cases.