- ECON urged a review of whether additional rules are needed for digital-asset services including DeFi, staking, lending and NFTs.
- In a report, ECON recommended assessing whether those services should be brought within the scope of the Markets in Crypto-Assets regulation (MiCA).
- MiCA’s transition period for existing operators will end on July 1, after which crypto-asset service providers in the EU will need MiCA authorization to continue operating.
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The European Parliament’s Committee on Economic and Monetary Affairs, or ECON, urged the European Commission to examine whether additional regulation is needed for digital-asset services including decentralized finance, or DeFi, staking, lending and non-fungible tokens, or NFTs.
Cointelegraph reported on June 27 that, in a report adopted ahead of a plenary vote, ECON recommended assessing whether DeFi, staking, crypto lending and borrowing, and NFTs should be brought within the scope of the Markets in Crypto-Assets regulation, or MiCA.
The report also called for broader tokenization across financial services and support for euro-denominated stablecoins.
It added that the EU digital-asset market could become fragmented if member states introduce their own rules beyond MiCA, and stressed the need for consistent application of the framework.
The European Commission has already started reviewing potential changes to MiCA. In May, it launched a public consultation on whether to include DeFi, staking, NFTs and tokenized financial assets in the regulatory framework, and it is also reconsidering a provision banning yield-bearing stablecoins.
Meanwhile, MiCA’s transition period for existing operators will end on July 1. After that, crypto-asset service providers in the EU will generally need MiCA authorization to continue operating.