EU Lawmakers Call for Regulated Stablecoins and DeFi Assessment

The European Parliament's economic affairs committee has called on the European Commission to assess whether decentralized finance (DeFi), staking, non-fungible tokens (NFTs) and other crypto activities should be regulated. The recommendations are part of a report tabled for plenary vote, which also promotes tokenization across financial services and encourages euro-denominated stablecoins.

The report, drafted by Belgian MEP Johan Van Overtveldt, urges consistent application of the European Union's Markets in Crypto-Assets Regulation (MiCA) to preserve a level playing field for crypto firms. It warns against introducing national requirements beyond MiCA that could fragment the bloc's digital asset industry.

The Commission is already reviewing MiCA and has 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. The transitional period for MiCA ends July 1, after which crypto asset service providers must hold authorization under the regulation to continue operating across the EU.