EU Parliament Asks for Closer Review of DeFi, NFTs, and Crypto Lending

The European Parliament has passed a digital assets policy report that calls for a closer review of decentralized finance (DeFi), staking, crypto lending and borrowing, non-fungible tokens (NFTs), and tokenized financial assets. This move comes after the transition period for MiCA's (Markets in Crypto-Assets Regulation) ended on July 1, requiring covered crypto service providers to obtain national or EU-wide authorization.

The report does not amend MiCA or create new legal duties for crypto firms but asks the European Commission to assess whether some crypto activities outside of MiCA should receive clearer regulatory treatment. This includes areas such as DeFi, staking, and NFTs that remain under policy review due to being outside MiCA's direct scope.

The report emphasizes the need for consistent MiCA application across member states to support the EU's digital asset market. It also expresses a supportive tone toward tokenization and euro-denominated stablecoins, stating that regulated digital assets could enhance European financial markets if rules are applied clearly and consistently.