EU lawmakers urge assessing DeFi, staking, NFT regulation
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
The European Parliament's Economic Affairs Committee has recommended that the European Commission assess whether crypto lending and borrowing, staking, NFTs, and decentralized finance (DeFi) should be regulated. These recommendations are part of a report authored by Belgian MEP Johan Van Overtveldt, pending a plenary vote expected on July 6. The report also promotes tokenization in financial services, supports euro-denominated stablecoins, and suggests reviewing whether additional crypto activities fall under the EU’s Markets in Crypto-Assets Regulation (MiCA).
Why it matters
The report reflects evolving policymaker views on stablecoins and digital assets, encouraging euro-denominated stablecoins to enhance EU payment sectors and support the euro’s international role. It aims to preserve a unified regulatory framework across the EU to avoid fragmentation in the digital asset industry, and complements efforts to develop a digital euro alongside private digital money, impacting the future of Europe’s digital financial ecosystem.
Key context
The report follows recent calls for tighter crypto restrictions after 2023 banking crisis incidents involving stablecoin reserves, including the collapse of Silicon Valley Bank which affected USDC’s peg. The European Commission is currently reviewing MiCA, including consultation on expanding its scope to cover DeFi, staking, lending, NFTs, and tokenized assets. MiCA’s transitional period ends July 1, after which crypto service providers need authorization to operate legally in the EU.
Key numbers and entities
The European Parliament’s Economic Affairs Committee (ECON), Belgian MEP Johan Van Overtveldt, the European Commission, Markets in Crypto-Assets Regulation (MiCA), and stablecoin issuer Circle are central to the report. The report notes $3.3 billion of Circle’s USDC reserves were held at Silicon Valley Bank at collapse.
What remains unclear
The source does not specify which regulatory measures might be taken following the assessment or how soon changes to MiCA could occur post-report adoption. The report’s impact on specific crypto firms or stakeholders remains unspecified, as does the European Parliament's final decision after the plenary vote.