European Parliament lawmakers are calling for an assessment of whether decentralized finance (DeFi), staking, and non-fungible tokens (NFTs) should be regulated under the EU's Markets in Crypto-Assets Regulation (MiCA). The nonbinding report also encourages euro-denominated stablecoins.
The European Parliament's push to assess broader crypto activities for regulation signals a potential expansion of the EU's digital asset framework beyond the current MiCA rules, impacting innovation and market participants in DeFi, staking, and NFTs.
Lawmakers in the European Parliament's economic affairs committee have called on the European Commission to evaluate the need for regulating decentralized finance (DeFi), staking, and non-fungible tokens (NFTs). This recommendation is part of a nonbinding report that outlines the Parliament's perspective on future digital asset regulation.
The report, drafted by MEP Johan Van Overtveldt, also advocates for promoting tokenization within financial services and encouraging the development of euro-denominated stablecoins to bolster the EU's payment sector. The committee's approval of the report moves it forward for a plenary vote, anticipated on July 7.
While the resolution would establish Parliament's official stance, it would not create new legal obligations or amend the existing Markets in Crypto-Assets Regulation (MiCA). The committee's stance on stablecoins reflects a softening view, with the report welcoming euro-denominated stablecoins under MiCA, contrasting with earlier calls for stricter restrictions following the 2023 banking turmoil.
Van Overtveldt, who previously likened cryptocurrencies to drugs, highlighted the potential for euro-denominated stablecoins to complement tokenized bank deposits and central bank digital currencies, facilitating faster cross-border payments and enhancing the EU's financial market competitiveness. This aligns with the committee's broader support for a digital euro ecosystem where public and private digital money coexist.
The report also stressed the importance of consistent MiCA application across the EU to ensure a level playing field for crypto firms and warned member states against introducing national rules that could fragment the market. The European Commission is currently reviewing MiCA and has initiated a public consultation on potentially expanding its scope to include DeFi, staking, NFTs, and tokenized financial assets.