EU lawmakers adopt digital assets policy stance after MiCA transition ends

EU lawmakers on Tuesday adopted a position paper on digital assets, setting out their view on how the bloc should approach crypto regulation after the rollout of its Markets in Crypto-Assets (MiCA) framework.

The paper calls on the European Commission to assess whether activities including decentralized finance (DeFi), crypto lending and borrowing, staking and non-fungible tokens (NFTs) should be brought more clearly into the EU‘s regulatory perimeter. It also urges consistent application of MiCA across member states and warns against national rules that could fragment the bloc’s digital asset market.

The vote turns the report, “Digital assets – challenges for the competitiveness and integrity of the European Union‘s financial system,” into Parliament’s formal policy position on digital assets, but it does not directly amend MiCA or create new legal obligations for crypto firms.

MiCAs transitional period ended on July 1, requiring crypto-asset service providers that fall under the framework to obtain bloc-wide or national authorization to continue operating across the European Union.

The EU Parliament overwhelmingly approved its digital asset policy stance. Source: European Parliament

EU lawmakers look beyond MiCA

The report reflects growing pressure in Brussels to address digital asset activities that remain outside MiCAs current scope.

While MiCA established licensing and conduct rules for crypto-asset service providers and issuers of certain tokens, lawmakers have continued to debate how the framework should treat DeFi, staking, lending, NFTs and tokenized financial assets.

Related: EU crypto rulebook faces enforcement challenge as MiCA transition ends

The EC has already been reviewing whether MiCA should be expanded. In May, it opened a public consultation that sought feedback on potential changes to the framework, including whether additional crypto activities should be covered and whether MiCAs restrictions on interest-bearing stablecoins should be revisited.

The Parliament report approved Tuesday also takes a more supportive tone toward tokenization and euro-denominated stablecoins, arguing that digital assets could support the competitiveness of EU financial markets if regulated consistently across the bloc.

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