European Parliament panel urges wider review of crypto regulation

The European Parliament’s Economic and Monetary Affairs Committee has recommended that the European Commission examine whether DeFi, staking, non‑fungible tokens and crypto‑lending services should fall under the EU’s Markets in Crypto‑Assets (MiCA) regime, a move that could reshape the bloc’s digital‑asset rulebook [2].

Committee recommendation and its scope

The ECON committee’s report, drafted by Belgian MEP Johan Van Overtveldt, flags four emerging sectors—decentralised finance protocols, staking services, NFT marketplaces and crypto‑lending platforms—as areas that may need formal regulation [2]. The recommendation follows a broader EU consultation launched by the European Commission on 20 May 2026 to gather feedback on MiCA’s performance and possible extensions [1]. That public consultation runs until 31 August, with a parallel targeted consultation for industry stakeholders [3].

Why the review matters now

MiCA, which created a harmonised framework for crypto‑assets, stablecoins and service providers across the EU, was implemented in 2024 [1]. Since then, the market has evolved and international regulatory approaches have shifted, prompting the Commission to assess whether the existing rules remain “fit for purpose” [1]. The committee warns that leaving DeFi, staking and NFT activities unregulated could create a fragmented landscape, while expanding euro‑denominated stablecoins under MiCA could bolster the euro’s cross‑border payment role [2][4].

Legislative timeline and next steps

If the plenary adopts the resolution on 7 July, it will become the Parliament’s official position but will not instantly amend MiCA [2][6]. The review process is expected to last 12–18 months, with further public consultations likely before any formal legislative proposal [2]. Meanwhile, the MiCA transitional period ends on 1 July, after which crypto‑asset service providers must hold authorisation to operate EU‑wide [4].

What to watch

• The outcome of the plenary vote on 7 July 2026, which will set the Parliament’s stance on expanding MiCA.
• The EU Commission’s next consultation report, due after the 31 August feedback deadline, which could outline concrete amendment proposals.
• The July 1 deadline for MiCA authorisations, after which unregistered service providers must cease EU operations.

The committee’s push signals a decisive step toward broadening EU crypto oversight, but the exact shape of any future MiCA amendments remains uncertain, leaving the market to watch both legislative and consultation outcomes closely.