European Parliament called for review of crypto rules beyond MiCA after July transition

The European Parliament has adopted a new policy paper that signals the possibility of extending the European Union’s crypto asset regulatory framework beyond its current MiCA provisions. Passed on Tuesday, the document outlines the Parliament’s views on the future of digital asset regulation in the EU, though it does not directly change any existing laws.

New areas under the spotlight after MiCA

Parliament has asked the European Commission to examine whether activities currently outside the scope of MiCA require more explicit oversight. This appeal comes as the transition period for MiCA ends on July 1. From then on, crypto asset service providers covered by MiCA will need authorization to operate across the EU.

The policy paper highlights decentralized finance, crypto lending and borrowing, staking services, and NFTs as priority areas. Lawmakers underscored that these rapidly growing sectors require more legal clarity to protect users and to foster a more predictable environment for industry development.

Mini glossary: MiCA refers to the EU’s comprehensive framework for regulating crypto asset markets. DeFi is the general term for blockchain-based financial applications that operate without intermediaries.

Focus on regulatory consistency among member states

The document not only calls for a review of new sectors but also emphasizes the consistent application of existing rules across all EU member states. Lawmakers warned that differing approaches among countries could create regulatory gaps and weaken the single market framework for digital assets.

For this reason, closer coordination among national regulators is recommended. The aim is to ensure crypto companies encounter similar standards regardless of which EU country they operate in. This approach signals a preference for a unified market structure, rather than a fragmented one, under MiCA.

Positive view on tokenization and euro-backed stablecoins

While calling for stricter oversight, the policy paper also takes a constructive stance on blockchain-based innovation. Lawmakers believe tokenization can make assets more accessible and efficient, strengthening European financial markets.

The document also highlights the potential for euro-pegged stablecoins to bolster the region’s digital economy. Parliament calls on the European Commission to regularly review MiCA to balance financial stability with technological progress.

The European Commission is already conducting such a review. In May, it launched a public consultation on possible regulation of additional crypto activities and on revisiting rules for interest-bearing stablecoins.

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