The European Parliament has formally called on the European Commission to assess whether decentralized finance, staking, crypto lending and NFTs should be brought under the EU's regulatory umbrella, signaling the next phase of rulemaking after MiCA's transition period ended July 1.
The European Parliament on Tuesday adopted a formal policy position calling for the European Commission to assess whether decentralized finance, staking, crypto lending and non-fungible tokens should be brought under the EU's regulatory perimeter, as the bloc shifts from rulemaking to enforcement under its Markets in Crypto-Assets framework.
"The report reflects growing pressure in Brussels to address digital asset activities that remain outside MiCA's current scope," the Parliament said in its adopted paper, titled "Digital assets – challenges for the competitiveness and integrity of the European Union's financial system."
The vote follows MiCA's transitional period ending July 1, which forced crypto-asset service providers without authorization to cease regulated services across the bloc. ESMA's register now lists 280 licensed CASPs, up from 243 a week earlier, though that represents roughly 90% fewer firms than the approximately 2,700 registered VASPs that previously operated in Europe, according to Tesseract CEO James Harris.
The Parliament's stance adds momentum to the European Commission's ongoing MiCA review — which industry participants call "MiCA 2" — with a public consultation extended to Sept. 30. The outcome will determine whether the EU's regulatory framework expands to cover activities that currently operate in a gray area, affecting hundreds of protocols and platforms serving European users.
DeFi, Staking and Lending in the Crosshairs
The report specifically flags decentralized finance protocols, crypto lending and borrowing platforms, staking services and NFTs as activities that may need clearer rules. While MiCA established licensing and conduct requirements for crypto-asset service providers and issuers of asset-referenced and e-money tokens, these newer categories were left largely outside its scope.
The European Commission opened a public consultation in May seeking feedback on potential changes, including whether MiCA's restrictions on interest-bearing stablecoins should be revisited. The Parliament's report takes a more supportive tone toward tokenization and euro-denominated stablecoins, arguing that digital assets could support the competitiveness of EU financial markets if regulated consistently across member states.
Enforcement Gap Widens Between Licensed and Offshore Firms
Attention is now shifting from authorization queues to supervision. James Harris warned that licensed firms remain exposed while offshore rivals continue serving European users without equivalent obligations. "This will all be a waste of time if the regulators don't come and step in and write cease and desist letters to organizations that are offering non-compliant versions of what we're effectively competing against," he said during a BeInCrypto panel.
Early enforcement signals are mixed. Bybit restricted EEA trading after Binance's retreat from the region, while Tether faced delistings across the bloc. Belgium's Financial Services and Markets Authority identified six crypto-asset service providers operating without authorization and added them to its public warning list on July 6.
Meanwhile, Ripple secured MiCA authorization, and Standard Chartered, FalconX and Sygnum Europe were among 37 firms added to ESMA's register in early July, showing major institutions still betting on the framework.
Stablecoin Debate Intensifies
The Parliament's supportive stance on euro-denominated stablecoins adds to a debate among policymakers and industry groups over whether MiCA's stricter rules are helping the euro ecosystem grow or limiting its competitiveness against dollar-backed tokens. A Blockchain for Europe report in April argued that MiCA's reserve requirements and ban on interest payments left euro tokens at a disadvantage. The European Central Bank pushed back in May, warning that expanding euro stablecoin issuance could weaken bank lending and complicate monetary policy.
The coming months will reveal whether national authorities act against non-compliant providers. That answer, more than any license count, will determine if Europe's regulatory bet attracts the institutions it was written for.
This article is for informational purposes only and does not constitute investment advice.
