On the regulatory front, the challenge now is ensuring interoperability between regimes in different jurisdictions, to avoid fragmenting a market that is global by nature.
Two of the most controversial points in these regulations concern the payment of interest to stablecoin holders and multi-issuance across jurisdictions. In the US, banks have criticized the legislation for not extending the prohibition on interest payments to distribution intermediaries (exchange platforms or custodians)—a “loophole” that could increase the risk of bank deposits being replaced by stablecoins. In contrast, MiCA’s prohibition is clearer.
In the US, banks have criticized the legislation for not extending the prohibition on interest payments to distribution intermediaries
Multi-issuance is a mechanism whereby entities in different jurisdictions can issue identical, fungible stablecoins, but under different regulatory regimes and backed by separate asset reserves. MiCA does not expressly regulate this practice, but its use in the market has sparked intense debate among European institutions about the risks it may pose to European consumers—specifically, whether reserves might be insufficient to cover stablecoin circulation, and whether MiCA’s current framework offers the necessary safeguards. This debate underscores the importance of interoperability between different regulatory frameworks and the need for international convergence. While the Genius Act envisages reciprocal agreements for foreign issuers subject to comparable supervision, MiCA does not include such provisions—meaning multi-issuance would be the only possible route to interoperability.
To address this debate, the European Commission is expected to issue guidance clarifying the treatment of multi-issuance schemes under MiCA, to assist authorities in their supervision. Looking ahead, the regulation already acknowledged its own limits and includes a mandate for the European Commission to report on matters outside MiCA’s scope: Decentralized Finance (DeFi), lending, and NFTs not currently covered.
The European Commission is expected to issue guidance clarifying the treatment of multi-issuance schemes under MiCA, to assist authorities in their supervision.
While clarity on these outstanding issues is still awaited, the priority for jurisdictions must be to pursue interoperability between their frameworks. Only by doing so can they mitigate fragmentation and ensure that legislation keeps pace with evolving markets and their global scale.