The European Parliament is pushing for expanded crypto regulation just days after the Markets in Crypto-Assets framework took full effect on July 1st. Lawmakers are calling on the European Commission to identify regulatory gaps and assess whether DeFi protocols, staking services, NFTs, and tokenised assets require additional oversight beyond MiCA’s current scope, which primarily covers centralised providers.
Parliament’s report warns that unregulated DeFi lending could create shadow-banking risks, while staking and yield products raise consumer protection concerns. A key worry is regulatory fragmentation if individual EU member states develop conflicting approaches, undermining the single-market framework MiCA established.
The report takes a favourable stance on euro-denominated stablecoins, viewing them as competitive tools for European finance. Data from Decta shows MiCA-compliant euro stablecoin market capitalisation surged 128 percent to 674 million dollars over the past year, with trading volumes up 43 percent.
FXnCO Insight
Brokers and institutional firms offering DeFi access, staking products, or NFT exposure should prepare for heightened European regulatory scrutiny and potential compliance requirements within the next regulatory cycle.
Source: Finance Magnates