The European Union could extend its crypto framework to DeFi, staking, lending and NFTs. MEPs ask the Commission to assess activities still poorly covered by MiCA. The project does not create any immediate obligations, but it already outlines the next stage of European regulation of digital assets.
In brief
- The EU is considering expanding crypto regulation beyond MiCA.
- DeFi, staking, lending and some NFTs are affected.
- No new obligations have yet been officially adopted.
Crypto: Europe looks beyond MiCA
The European Parliament's Economic and Monetary Affairs Committee wants to fill the gray areas of the crypto market. Its report calls on the Commission to study DeFi, staking, lending and NFTs. These activities today remain partially or indirectly covered by the MiCA framework.
The text was prepared by Belgian MEP Johan Van Overtveldt. This is an initiative resolution. Its adoption would therefore not automatically modify MiCA and would not immediately impose new rules on crypto companies. The vote in plenary session should allow Parliament to establish its political position. The Commission will then retain the legislative initiative. It will have to decide whether the risks identified justify an extension of the regulation or an additional text.
MiCA mainly regulates crypto-asset issuers and centralized providers. DeFi poses a different problem. Some protocols operate with smart contracts, distributed governance, and no clearly identifiable company.
The EU will therefore have to determine who bears legal responsibility. Developers, web interfaces, holders of governance tokens or decentralized autonomous organizations could be affected. However, a definition that is too broad would risk assimilating simple software to a financial service.
Staking raises other questions. Platforms sometimes offer a return without clearly explaining lock-up periods, fees or risk of loss. European authorities are also interested in crypto lending, leverage and collateral reuse.
European regulators had already noted risks linked to lack of information, liquidity and collateral chains. The new regulatory thinking therefore does not start from scratch. It extends the work carried out on DeFi regulation.
NFTs could lose their special treatment
NFTs are also at the center of the review. MiCA in principle excludes truly unique and non-fungible assets. However, this exception becomes more difficult to apply when thousands of tokens belong to the same collection.
An NFT presented as unique can also serve as an investment product. Some projects promise returns, represent financial rights or almost reproduce the functioning of classic tokens. The EU could therefore favor the economic function rather than the label used by the issuer.
This approach would limit circumventions. However, it could affect sectors that do not directly relate to finance, such as digital art, games or collectibles. The future definition should avoid imposing the same obligations on a digital work and an asset sold as an investment.
The report also asks uniform application of MiCA. Several states may be tempted to add their own requirements. An accumulation of national rules would fragment the European crypto market and weaken the principle of the single passport. Parliament is not only seeking to strengthen surveillance. The report also encourages the tokenization of financial services and the development of euro-denominated stablecoins.
Euro stablecoins could coexist with tokenized bank deposits and a future digital euro. This architecture would give a place to banks, crypto companies and public currency, without forcing a single model to replace all the others.
Europe is therefore moving forward on a narrow line. It wants to regulate the activities left on the fringes of MiCA without stifling decentralized protocols. The outcome will depend on its ability to distinguish true intermediaries from open infrastructures. Precise regulation could strengthen confidence. Too broad a text could, on the contrary, push part of the crypto industry out of the European Union.
Maximize your Tremplin.io experience with our 'Read to Earn' program! For every article you read, earn points and access exclusive rewards. Sign up now and start earning benefits.
