On Wednesday (May 20) the European Commission officially opened up to public and institutional comment whether the 2024 Markets in Crypto-Assets Regulation (MiCA) policy framework is still “fit for purpose” as crypto markets evolve. That wording matters. Regulators do not typically reopen flagship frameworks so quickly, unless they believe either that the market moved faster than expected, competitive dynamics have changed, geopolitical pressure is forcing adaptation, or some combination of the three.

MiCA was developed in response to one of the more turbulent periods in crypto history. Between 2021 and…