European Parliament panel calls for wider crypto regulation review

The European Parliament’s Economic and Monetary Affairs Committee voted to ask the European Commission to assess whether crypto lending, staking, NFTs and DeFi should fall under additional regulation, a move that could broaden the EU’s nascent crypto rules beyond the Markets in Crypto‑Assets (MiCA) framework [2].

Scope of the review

The resolution, drafted by Belgian MEP Johan Van Overtveldt, does not propose new rules but asks the Commission to determine whether activities that have grown “large enough to raise market‑structure, consumer‑protection and financial‑stability questions” merit regulation [2]. The panel highlights gaps in MiCA: while the regulation covers crypto‑asset service providers and stablecoin issuers, it leaves DeFi protocols, staking services, NFT markets, crypto‑lending platforms and tokenised financial assets largely untouched.

Areas under scrutiny

• Crypto lending and borrowing – Concerns include collateral management, liquidation risk, platform solvency and disclosure standards.
• Staking – Issues revolve around yield promises, custody of validator keys and whether users grasp operational risks.
• Non‑fungible tokens (NFTs) – The dual nature of NFTs as collectibles or investment‑type products complicates licensing.
• Decentralised finance (DeFi) – The lack of a conventional operator, board or headquarters makes enforcement difficult; regulators would need to decide whether to target front‑end providers, developers, token‑holders or validators [2].

The report’s language keeps the door open for future rule‑making while avoiding an immediate legislative clash, signalling that the EU is moving from the first‑stage licensing of crypto firms toward a broader assessment of where MiCA may be incomplete.

What to watch

• July 7 – Plenary vote on the committee’s report, which will set the Parliament’s official position.
• Commission assessment – Timeline for the European Commission’s review of the identified activities, likely to be outlined in a follow‑up roadmap.
• Potential regulatory signals – Any statements from the Commission or the European Banking Authority that hint at new licensing requirements for DeFi or staking services.

The panel’s push underscores growing EU concern that rapid innovation in crypto‑related services may outpace the current regulatory scaffold, raising questions about how and when the EU will extend MiCA’s reach to cover these emerging sectors.