Coinbase Urges EU to Enhance MiCA Framework for Global Competitiveness

The prominent cryptocurrency exchange Coinbase has called upon European Union legislators to refine the Markets in Crypto-Assets (MiCA) framework to secure the region's position as a global leader in digital finance. Katie Harries, Coinbase’s Head of European Policy, emphasized on June 1, 2026, that the upcoming review of the regulation presents a critical opportunity to transition from early regulatory adoption to a sustainable competitive advantage. The exchange's proposals focus on technical adjustments designed to reduce systemic risk while fostering innovation across stablecoins, decentralized finance (DeFi), and tokenization.

Optimizing Stablecoin Reserves and Liquidity

A primary focus of the recommendations involves the structural requirements for stablecoin issuers. Harries suggested that the EU should adjust reserve requirements to permit a higher proportion of high-quality sovereign assets. This shift is intended to mitigate systemic risks associated with private credit markets while ensuring stability for users. Furthermore, Coinbase advocated for the enhancement of multi-issuer models to prevent the isolation of European markets.

• Improve access to global stablecoin liquidity to prevent market fragmentation.
• Allow for non-interest-bearing incentives, such as cashback programs and loyalty points, to encourage adoption.
• Avoid restrictions that limit order routing exclusively to EU-only venues, which could harm price discovery.

Clarifying DeFi Integration and Tokenization

The policy head also addressed the need for clear boundaries regarding Decentralized Finance. Coinbase is seeking a defined framework that explains how Crypto-Asset Service Providers (CASPs) can facilitate user access to DeFi protocols without facing regulatory ambiguity. Additionally, the exchange highlighted the importance of maintaining global competitiveness in the tokenization of real-world assets, suggesting that the European Commission explore how DeFi can support the broader development of capital markets.

The EU should leverage the MiCA review opportunity to transform early regulatory leadership into a lasting competitive advantage.

The exchange expressed its readiness to collaborate with the European Commission to ensure these priorities are reflected in the final regulatory updates. By addressing these technical and structural hurdles, Coinbase suggests the EU can better support the growth of blockchain technology and the digital asset ecosystem. This strategic engagement highlights the ongoing dialogue between major industry participants and regulators as the MiCA framework moves toward full implementation and subsequent refinement.