Woofun AI reports that Reed Smith has deployed Aquarius, an automated compliance engine designed to navigate the complexities of the EU’s Markets in Crypto-Assets (MiCA) regulation. This launch coincides with the conclusion of the regulatory transition period, forcing firms to abandon temporary national exemptions.

The platform automates critical workflows including crypto-asset classification, regulatory white paper generation, due diligence, and ESG disclosures.

Structurally, Reed Smith intends to extend Aquarius beyond Europe, targeting compliance regimes in the United Kingdom, the United Arab Emirates, Hong Kong, and Singapore. This expansion leverages the firm’s presence across 30 offices in North America, Europe, and Asia.

Per Woofun AI, the firm’s 'On Chain' initiative underpins this digital asset practice, advising on high-stakes transactions such as Trump Media’s $2.5 billion Bitcoin treasury financing. Reed Smith also served as counsel for Nakamoto Holdings in its merger with KindlyMD to form a Bitcoin treasury company, demonstrating deep industry integration.

The timing is critical as the European Securities and Markets Authority (ESMA) initiated a supervisory review of authorized providers last week. Sebastien Dessimoz, co-founder of Taurus, noted that obtaining a MiCA license is merely the start, with custodians facing ongoing scrutiny over cybersecurity and asset protection.

Looking ahead, EU policymakers are weighing revisions to the stablecoin framework, particularly regarding non-euro-denominated issuances. These discussions are partly driven by the United States' GENIUS Act, which established a federal framework for payment stablecoins, signaling potential regulatory convergence.