European Union officials are preparing to revise the bloc’s MiCA crypto framework in 2027 as foreign stablecoin restrictions and faster U.S. rulemaking expose gaps in the existing regime.

EU officials reportedly see MiCA revision as unavoidable

European diplomats said policymakers are expected to reopen the Markets in Crypto-Assets Regulation in 2027, according to a Euronews report.

The planned revision would examine how MiCA treats stablecoins issued outside the European Union. Current requirements have prevented several foreign issuers from receiving authorization, limiting their access to regulated exchanges across the bloc.

“Reopening the file seems unavoidable at this stage,” an unidentified European diplomat told Euronews.

The diplomat cited positions taken by European institutions, including the European Central Bank, along with changes in global regulation and digital-asset technology.

No final proposal has been published. Any amendment would need to pass through the EU’s legislative process before taking effect.

MiCA consultation could shape the 2027 proposal

The European Commission opened a targeted MiCA consultation on May 20 to determine whether the framework remains fit for purpose following its initial implementation.

The consultation covers developments that have occurred since MiCA entered into application. Its deadline has been extended to Sept. 30, with crypto issuers, service providers, regulators, central banks and finance ministries invited to respond.

The Commission said the feedback would support a report required under Articles 140 and 142 of MiCA. That report could be accompanied by legislation to amend or expand the regulation if officials conclude that changes are warranted.

Crypto.news previously reported that the review could examine stablecoin issuance, decentralized finance, tokenized assets and cross-border supervision.

Tether exclusion exposes stablecoin licensing gap

MiCA’s final transition period for crypto-asset service providers ended on July 1, forcing covered companies to obtain authorization or stop providing regulated services.

The change left Tether’s USDT without a compliant route onto regulated EU exchanges because the issuer did not seek authorization. Coinbase, Kraken and Crypto.com were among the platforms that removed USDT trading for European customers, according to crypto.news.

Tether CEO Paolo Ardoino has criticized MiCA’s reserve requirements, particularly rules requiring stablecoin issuers to hold a large portion of their reserves in European bank deposits.

Circle took a different approach by securing authorization for USDC and EURC. Stripe-owned Bridge also recently joined the MiCA register, raising the number of authorized electronic-money-token issuers to 42. The bloc had also registered 324 authorized crypto-asset service providers.

A revision could create a route for foreign issuers while preserving EU reserve, disclosure and consumer-protection requirements.

US stablecoin rules add pressure on Europe

The reported review comes as the United States advances its stablecoin framework under the GENIUS Act, signed into law in July 2025.

The law established federal requirements for payment-stablecoin reserves, redemptions, disclosures and supervision. Although U.S. agencies missed a one-year deadline to finalize several implementing rules, the framework has already given issuers and financial institutions a federal structure for entering the sector.

European officials are also considering whether MiCA should cover newer forms of tokenization. Possible additions include tokenized deposits, payment instruments and real-world assets that fall outside or sit between existing regulatory categories.

MiCA was approved by the Council of the EU in May 2023. A 2027 revision would allow policymakers to update rules based on several years of implementation, market changes and competition from the expanding U.S. stablecoin sector.

Morgan Stanley’s spot Bitcoin ETF added approximately 232.5 BTC worth $15.05 million as Bitcoin traded below $65,000, lifting the fund’s holdings above 6,500 BTC for the first time.

Morgan Stanley’s Bitcoin ETF adds 232 BTC

Blockchain intelligence platform Arkham reported that the Morgan Stanley Bitcoin Trust increased its holdings by approximately 232.548 BTC as Bitcoin remained under pressure near $65,000.

The purchase was valued at $15.05 million, implying an average price of around $64,718 per Bitcoin. It raised the fund’s total holdings to 6,563 BTC, worth more than $426 million at current market prices.

The transaction marked the first time MSBT’s Bitcoin balance exceeded 6,500 BTC. It also expanded the fund’s holdings during a period when Bitcoin traded below the average purchase price of many recent buyers.

CryptoQuant analyst Axel Adler Jr. said Bitcoin was trading below the realized price of short-term holders, referring to coins held for less than 155 days. Bitcoin traded around $64,952 on Aug. 8, while the short-term holder realized price stood at $67,523.

This left the spot price approximately 3.8% below the cost basis, creating potential selling pressure from recent holders seeking to exit around break-even.

Other Bitcoin ETFs also bought during the dip

Morgan Stanley was not the only major financial institution whose Bitcoin ETF added assets during the latest decline.

Arkham reported on Aug. 4 that BlackRock’s spot Bitcoin ETF bought approximately $111 million worth of BTC during the previous trading session. Fidelity added about $33 million, while Franklin Templeton purchased approximately $9 million.

The three funds accumulated around $153 million in Bitcoin combined. Arkham said none of the tracked ETFs sold Bitcoin that day and that the funds had recorded no Bitcoin sales during the opening sessions of August.

These figures refer to Bitcoin entering wallets associated with the ETFs. Such additions generally reflect investor inflows and the creation of new fund shares rather than purchases made for the asset managers’ corporate balance sheets.

The renewed accumulation followed a difficult period for U.S. spot Bitcoin ETFs. Crypto.news previously reported that the products recorded $265 million in net outflows as Bitcoin tested $63,000 on Aug. 1.

MSBT assets rise from July level

Morgan Stanley launched MSBT on April 8, becoming the first major U.S. commercial bank to issue a spot Bitcoin ETF under its own name.

Crypto.news previously reported that the fund launched with a 0.14% annual management fee. That undercut the 0.25% fees charged by BlackRock’s IBIT and Fidelity’s FBTC, while coming in one basis point below the Grayscale Bitcoin Mini Trust.

MSBT attracted $103 million in cumulative net inflows within eight days of its launch, overtaking WisdomTree’s Bitcoin Fund at the time. The rapid increase pointed to early demand from investors seeking Bitcoin exposure through Morgan Stanley’s investment platform.

The fund held approximately $392 million in net assets as of July 24, according to another crypto.news report citing Morgan Stanley’s product page. Arkham’s latest estimate of more than $426 million suggests its holdings have since expanded by approximately $34 million, though part of that difference may reflect changes in Bitcoin’s market price.

Bitcoin remains below a key holder cost level

Bitcoin’s inability to reclaim the short-term holder realized price leaves $67,523 as an important near-term level. A recovery above that area could reduce pressure on recent buyers currently holding unrealized losses.

Continued ETF purchases may help absorb Bitcoin entering the market, but the latest additions do not confirm that the broader outflow trend has reversed. Daily net-flow data will determine whether Morgan Stanley’s purchase forms part of a sustained return in institutional demand.

Failure to hold the $64,000 area could expose Bitcoin to another test of its recent lows. A move above $67,500, however, would return the asset above the average cost basis of short-term holders and improve its near-term structure.

Bitcoin price held near $65,000 on Aug. 8, but its failure to reclaim the short-term holder cost basis left the recovery exposed to renewed selling.

Bitcoin price struggles to hold above $65,000

According to data from crypto.news, Bitcoin (BTC) price was trading near $65,015 at the time of writing after repeatedly testing the $65,000 area. The daily candle had traded between $64,784 and $65,075, showing limited volatility following the rebound from its late-July lows.

The price has recovered from an Aug. 2 low near $62,200, but sellers continue to defend the area immediately above $65,000. In an Aug. 8 X post, analyst Ted Pillows said Bitcoin had failed to establish a firm hold above that threshold.

“BTC failed to hold above the $65,000 level. Sellers are still active in this zone, and Bitcoin needs to reclaim it for stronger upside.”

The daily chart shows BTC trading above its 20-day and 50-day simple moving averages at $64,461 and $63,363, respectively. Those averages form an initial support zone between approximately $63,300 and $64,500.

Bitcoin remains below its 100-day SMA at $68,052 and its 200-day SMA at $70,295. That structure shows that the short-term recovery has not yet reversed the broader downtrend that began after BTC reached approximately $82,000 in May.

Short-term holders could sell near $67,523

CryptoQuant analyst Axel Adler Jr. said Bitcoin remained below the realized price of short-term holders, which measures the average acquisition price of coins held for less than 155 days.

As of Aug. 8, Adler placed the short-term holder realized price at $67,523, compared with a BTC spot price of $64,952. That left Bitcoin $2,571, or 3.8%, below the cost basis.

The gap was the narrowest since July 21, bringing more short-term holders closer to breakeven. Investors who bought above the current price may use a recovery toward $67,500 to reduce exposure without taking a large loss.

Adler said Bitcoin had closed below the short-term holder realized price during 279 of the previous 284 days. He expects selling pressure to increase as the market approaches the cost line.

“STHs will start dumping into the market to close their positions at breakeven.”

The forecast is not guaranteed, but the cost basis creates a visible resistance area. Bitcoin would need to absorb potential holder selling and establish support above $67,523 to improve the medium-term structure.

BTC technical indicators favor a $65,250 test

The 4-hour chart offers a more constructive short-term picture. Bitcoin is trading above the Bollinger Band midline at $64,647 and close to the upper band at $65,257.

A 4-hour close above the upper band could support a move toward $65,600, followed by $66,000. The next major resistance would sit around the short-term holder cost basis between $67,500 and $67,600.

The relative strength index stood at 61.83, above its moving average of 59.25. That reading shows buyers currently have the momentum advantage without pushing BTC into overbought territory.

Momentum on the daily timeframe remains less decisive. Aroon Up stood at 50%, while Aroon Down was at 14.29%. The difference favors buyers, but the moderate Aroon Up reading does not yet confirm a strong daily uptrend.

BTC must first turn $65,000 into support and clear the $65,250–$65,600 range. A rejection could send the price back toward the Bollinger midline at $64,647, followed by the lower band at $64,037.

A deeper decline would expose $63,360, where the daily 50-day SMA is located. Pillows identified a broader demand zone near $62,000–$63,000, with further support around $59,000 if that area fails.

Liquidation heatmap shows pressure on both sides

CoinGlass’ one-week liquidation heatmap shows leveraged positions concentrated above and below Bitcoin’s current price.

The nearest major upside cluster appears around $65,500–$65,700. A move through that zone could liquidate short positions and accelerate a test of $66,000. Additional liquidity is visible above $66,000, although the concentration is weaker.

Larger downside clusters are located around $63,700–$63,900 and close to $63,000. These areas could attract price if Bitcoin loses the 4-hour Bollinger midline and the $64,000 level.

This positioning leaves BTC between competing liquidity pools. A breakout above $65,600 would favor a short squeeze, while a loss of $64,000 could pull the market toward the denser downside clusters.

For U.S. investors, the weekend move will occur while spot Bitcoin ETFs and CME futures are closed. Any sharp breakout before Monday could therefore produce a gap between Bitcoin’s continuously traded spot market and the reopening of regulated U.S. products.

The immediate bias remains mildly bullish while BTC holds above $64,000. However, the short-term holder cost basis at $67,523 and the long-term moving averages above $68,000 remain major barriers to a broader recovery.

The U.S. Senate has initiated the process for considering the CLARITY Act, setting up an initial procedural vote after lawmakers return from their August recess.

CLARITY Act moves toward September vote

Senate Majority Leader John Thune submitted the motion after a late-night voting session, according to reports released Saturday. The timing prevented the Senate from holding a procedural vote before lawmakers began their August recess.

The filing nevertheless allows leadership to place the crypto market structure bill near the front of the Senate’s September agenda. Senators are expected to return to Washington on Sept. 14.

Thune had previously confirmed that the chamber would not vote on the legislation before the recess but said leaders intended to prepare it for action upon their return.

“We’re getting that queued up first thing when we come back,” Thune said in a statement reported before the recess.

An initial vote would concern whether the Senate should proceed with consideration of the legislation. It would not amount to final passage. Senators would still need to debate the bill, consider amendments and hold a separate vote on approving the final text.

Unresolved disputes could block progress

The procedural filing does not indicate that Republicans and Democrats have reached an agreement on the provisions that delayed the August vote.

Lawmakers remain divided over ethics restrictions covering government officials’ crypto interests, enforcement powers, illicit-finance safeguards and stablecoin rewards. Democrats have sought stronger conflict-of-interest rules and additional consumer protections.

Sen. Elizabeth Warren has said she supports federal crypto legislation but opposes the current CLARITY Act. She cited concerns involving government corruption, consumer protection, national security and financial stability.

Stablecoin rewards remain another major obstacle. Banking groups have pushed lawmakers to restrict payments offered for holding stablecoins, arguing that such products could pull deposits from traditional banks. Crypto companies maintain that broader restrictions could reduce competition.

The current compromise would restrict passive yield paid solely for holding stablecoins while allowing certain rewards tied to customer activity. crypto.news previously reported that changes to these rules could affect Coinbase’s USDC rewards business, which generates an estimated $1.35 billion in annual revenue.

Bill would divide SEC and CFTC authority

The CLARITY Act would establish a federal framework for determining when digital assets fall under the authority of the Securities and Exchange Commission or the Commodity Futures Trading Commission.

The House passed an earlier version of the bill by a 294–134 vote in July 2025. The Senate Banking Committee later advanced its version 15–9 in May 2026, with Republicans joined by Democratic Sens. Ruben Gallego and Angela Alsobrooks.

However, clearing the committee did not guarantee sufficient support on the Senate floor. Thune would generally need 60 votes to invoke cloture and limit debate, requiring support from several Democrats.

Without the legislation, U.S. crypto companies would continue operating under the existing combination of SEC and CFTC oversight, court decisions and state-level requirements.

Crypto markets hold steady after Senate filing

Bitcoin traded near $64,980 on Saturday, up about 0.4%, after moving between approximately $64,507 and $65,312.

Crypto-related stocks also finished Friday higher. Coinbase closed at $153.60, gaining about 5.7%, while Circle ended the session at $66.67, up roughly 5.4%. Those moves followed broader market trading and cannot be attributed solely to the Senate development.

The next test will come when senators return in September. Lawmakers must settle the remaining policy disputes and secure enough bipartisan support before the bill can advance beyond its initial procedural vote.

A wallet linked to the Aztec Private Rollup Bridge exploit deposited another 300 ETH into Tornado Cash, bringing its total transfers to the mixer to 500 ETH.

Aztec exploiter deposits 300 ETH into Tornado Cash

Blockchain security firm PeckShield reported on Aug. 8 that an address labeled as the Aztec Private Rollup Bridge exploiter deposited 300 Ether into Tornado Cash.

The ETH was worth approximately $572,000 when PeckShield issued the alert. On-chain data included in the firm’s report showed three separate deposits of 100 ETH each.

PeckShield said the latest transactions raised the wallet’s cumulative Tornado Cash deposits to 500 ETH. Based on the valuation attached to its alert, the total was worth roughly $953,000 at press time.

Tornado Cash pools deposits and allows users to withdraw funds through different addresses. This process can obscure the direct connection between the original sending wallet and subsequent recipients, making asset tracking and recovery more difficult.

PeckShield did not identify the person or group controlling the address. There was also no immediate indication that any of the transferred funds had been recovered.

Private Rollup Bridge lost $2.165 million

The latest transfers relate to an exploit that affected Aztec’s Private Rollup Bridge in June. Reports at the time placed the loss at approximately $2.165 million.

The stolen assets reportedly included 1,158 ETH, 150,000 DAI and 0.47 renBTC. Aztec said the affected bridge was a legacy product with no connection to the current Aztec network or its AZTEC token.

The Private Rollup Bridge incident followed a separate attack on Aztec Connect, another discontinued part of the project’s earlier infrastructure.

As crypto.news previously reported, an attacker drained around $2.1 million from Aztec Connect’s old RollupProcessor contract on June 14. The affected system had been discontinued about three years earlier and was no longer used by Aztec’s active network.

Security researchers said that the exploit involved a mismatch between the transactions covered by a zero-knowledge proof and those processed during settlement. The weakness allowed the attacker to create unbacked balances and withdraw assets from the contract.

Aztec Labs could not pause or upgrade the deprecated contract because it had surrendered its administrative keys. The design made the contract immutable but also removed the team’s ability to intervene after the flaw was exploited.

Tornado Cash transfers follow wider exploit surge

The two Aztec incidents formed part of a wider increase in crypto security breaches during June.

Crypto.news reported that DefiLlama recorded $74.9 million in losses across 29 exploits during the month. Its data included two separate Aztec incidents valued at approximately $2.1 million each.

Other exploiters have also used Tornado Cash to move stolen assets. In July, a wallet associated with the Drift Protocol exploit deposited 23,095 ETH, then worth around $44.4 million, into the mixer after months of inactivity.

A wallet linked to the Radiant Capital attack previously transferred 2,834 ETH into Tornado Cash, while the Cork Protocol exploiter routed approximately 4,520 ETH through the service.

The latest Aztec deposits therefore follow an established pattern in which attackers convert stolen assets into ETH before sending them through mixing protocols.

Tornado Cash remains under US scrutiny

The U.S. Treasury removed Tornado Cash and associated smart-contract addresses from its sanctions list in March 2025. The decision followed a federal appeals court ruling that the Treasury exceeded its authority by sanctioning immutable smart contracts.

However, U.S. authorities have continued to examine the use of crypto mixers in money laundering, sanctions evasion and cybercrime cases. Treasury officials have also maintained concerns about their use by North Korea-linked hacking groups.

The 500 ETH transferred by the Aztec exploiter represents less than half of the value reportedly taken from the Private Rollup Bridge. Further activity from the labeled address could show whether the remaining assets will also be routed through Tornado Cash or moved to other services.