EU Lawmakers Call for Regulation of DeFi, Staking, NFTs

EU lawmakers have urged the European Commission to assess whether decentralized finance (DeFi), staking, non-fungible tokens (NFTs) and crypto lending and borrowing should be regulated.

The recommendations were part of a report tabled for plenary vote by the European Parliament's economic affairs committee. The report, drafted by Belgian Member of the European Parliament Johan Van Overtveldt, calls for promoting tokenization across financial services, encouraging euro-denominated stablecoins and assessing whether additional crypto activities should be regulated under the European Union’s Markets in Crypto-Assets Regulation (MiCA).

The Commission is already reviewing MiCA. In May, it launched a public consultation seeking feedback on whether the framework should be expanded to cover areas including DeFi, staking, lending, NFTs and tokenized financial assets.