EU Committee Calls for Comprehensive Crypto Regulation Amid Growing DeFi Momentum

The European Parliament's Committee on Economic and Monetary Affairs (ECON) has called for a review of regulations under MiCA, the EU's Markets in Crypto-Assets framework. The committee recommends that the European Commission evaluate whether decentralized finance (DeFi), staking, non-fungible tokens (NFTs), and crypto lending services should be brought under MiCA regulation.

The current MiCA framework covers crypto-asset issuers and service providers but leaves several emerging areas unregulated. The committee specifically called for a review of DeFi protocols, which operate without central intermediaries, and staking services, where users lock up tokens to support blockchain networks in exchange for rewards. NFTs, which have grown rapidly in market size, and crypto lending platforms are also flagged as needing clearer rules.

The committee's emphasis on euro-denominated stablecoins is particularly notable. By promoting digital versions of the euro, the EU aims to enhance the euro's role in global digital payments and reduce dependency on dollar-pegged stablecoins like USDC and USDT.