EU Lawmakers Urge Assessment of DeFi, Staking and NFT Regulation
Vexoda Newsroom
The European Parliament's economic affairs committee has called on the Commission to assess whether decentralized finance (DeFi), staking, and non-fungible tokens (NFTs) should be regulated under MiCA
In a recent development, European Parliament lawmakers have urged the European Commission to evaluate whether decentralized finance (DeFi), staking, and non-fungible tokens (NFTs) need specific regulation under MiCA. The recommendations were part of an own-initiative resolution by the Committee on Economic and Monetary Affairs (ECON).
The report was drafted by Belgian Member of the European Parliament Johan Van Overtveldt and outlines various proposals, including promoting tokenization in financial services, encouraging euro-denominated stablecoins, and assessing additional crypto activities under MiCA. The draft will be voted on at a plenary session scheduled for July 7th.
Van Overtveldt's stance reflects an evolving view among policymakers regarding digital assets. In the wake of banking crises involving Silicon Valley Bank, Signature Bank, and Silvergate Bank in 2023, he previously called for tighter restrictions on cryptocurrencies due to their association with stablecoins like USDC. However, his current position supports euro-denominated stablecoins under MiCA.
The report highlights potential benefits such as complementing tokenized commercial bank deposits and enhancing cross-border payments. It also emphasizes the importance of consistent application of existing regulations across the EU to maintain a level playing field for crypto firms.
This move signals that policymakers are considering expanding the scope of MiCA beyond its current framework, which primarily covers stablecoins. The Commission has already initiated a public consultation on whether DeFi, staking, and lending should be regulated under the existing regime.
As the debate continues, traders should monitor the progress of this resolution as it could significantly impact regulatory landscapes for digital assets in Europe. The outcome will likely influence market dynamics and investor confidence across various crypto sectors.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.