The European Parliament's Committee on Economic and Monetary Affairs (ECON) has formally urged the European Commission to evaluate whether decentralized finance (DeFi), staking, non-fungible tokens (NFTs), and crypto lending services require additional regulation under the existing Markets in Crypto-Assets (MiCA) framework. This recommendation is contained within an "own-initiative resolution" drafted by Belgian Member of the European Parliament Johan Van Overtveldt. The report was tabled for a plenary vote, which is anticipated to take place on July 7.
If adopted by the full Parliament, this resolution would establish the institution's official stance on digital assets policy. However, it is crucial to note that it would not, by itself, amend the MiCA regulation or immediately create new binding legal obligations. Instead, it serves as a strong political signal to the European Commission, guiding future legislative proposals and supervisory priorities within the bloc.
This development is highly significant for the crypto industry as it indicates a potential expansion of the EU's regulatory perimeter beyond the initial scope of MiCA. The current MiCA regulation, which is nearing the end of its transitional period on July 1, primarily covers crypto-asset issuers and service providers, but it leaves several rapidly evolving and innovative areas, such as DeFi, staking, and NFTs, largely unregulated. The ECON committee's call reflects a growing recognition among EU policymakers of the need to address these emerging sectors to ensure market integrity, consumer protection, and financial stability.
The report also emphasizes the importance of a consistent, EU-wide application of MiCA. It specifically warns member states against introducing additional national requirements that could lead to fragmentation of the single market for digital assets. Such fragmentation could hinder innovation and create an uneven playing field for crypto firms operating across the Union.
Furthermore, the resolution advocates for the promotion of tokenization across financial services and encourages the development and adoption of euro-denominated stablecoins. This aligns with broader EU efforts to strengthen its digital financial sovereignty and reduce reliance on non-European payment solutions and stablecoins. The committee believes that euro-backed stablecoins could complement tokenized commercial bank deposits and wholesale central bank digital currencies, ultimately contributing to faster and cheaper cross-border payments and enhancing the competitiveness of EU financial markets.
This initiative from the European Parliament's economic committee comes amidst the European Commission's ongoing review of the MiCA framework. In May, the Commission launched a public consultation to gather feedback on whether MiCA's scope should be expanded to encompass areas like DeFi, staking, lending, NFTs, and even to revisit the regulation's stance on interest-bearing stablecoins. The ECON committee's resolution effectively adds significant political weight to these considerations, pushing the Commission to actively explore a broader regulatory framework for the digital asset space.
The outcome of the July 7 plenary vote will be closely watched by stakeholders across the global crypto ecosystem, as it will shape the direction of future regulatory discussions and potentially impact how crypto businesses operate within one of the world's largest economic blocs. While not immediately legally binding, the Parliament's official position will undoubtedly influence the European Commission's subsequent legislative proposals, potentially leading to a more comprehensive and robust regulatory landscape for decentralized finance, staking, and NFTs in the European Union.
Original announcement: European Parliament Committee on Economic and Monetary Affairs (ECON)