Only the Legal Will Survive: New Rules in the US and EU Put Digital Payment Projects Under Pressure

Only the Legal Will Survive: New Rules in the US and EU Put Digital Payment Projects Under Pressure

Regulators on both sides of the Atlantic are reshaping the landscape. The US has introduced clear definitions for digital instruments used in payments and value transfer, while the EU is already enforcing MiCA — a new legal framework that changes how digital tools are launched and operated across the region.

The U.S. Securities and Exchange Commission (SEC) has officially stated that not all digital payment tokens fall under financial instruments laws. Assets designed purely for transfers, storage of value, or day-to-day use — and not for speculative gain — may be exempt from strict rules.

Key criteria from the SEC:

🔹 Must be tied to the US dollar or similar low-risk assets
🔹 Reserves must fully match the issued supply
🔹 Users must be able to redeem the asset anytime, with no limits
🔹 Must not offer benefits linked to company ownership or business results
🔹 Cannot be backed by other digital assets or precious metals

These changes are expected to shape how payment tokens are created and maintained in the US. One of the major issuers has already announced plans to release a new version that aligns with the updated standards.

The SEC also confirmed that mining using consensus algorithms like Proof-of-Work does not fall under financial issuance regulations — a notable clarification for digital infrastructure providers.

What’s Happening in Europe? MiCA Is Already in Effect

While the US updates its approach, Europe is already applying MiCA (Markets in Digital Assets) — a comprehensive regulation that governs digital solutions, tokens, and service platforms.

MiCA sets strict rules on:

• Where your business is registered
• How reserves are managed and disclosed
• Who can issue or operate digital payment tools
• Licensing and ongoing reporting requirements

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