The European Parliament’s economic affairs committee has urged the European Commission to assess whether decentralized finance, crypto staking, non-fungible tokens and crypto lending should face new regulatory requirements under the bloc’s digital asset framework. The nonbinding report, drafted by Belgian Member of the European Parliament Johan Van Overtveldt, represents Parliament’s evolving stance on crypto regulation and signals potential expansion of the Markets in Crypto-Assets Regulation, or MiCA.
The recommendations were included in a report tabled Friday for a plenary vote expected July 7. If adopted, the resolution would become Parliament’s official position on digital assets policy, though it would not directly amend MiCA or create immediate legal obligations. The report also called for promoting tokenization across financial services and encouraging euro-denominated stablecoins to strengthen the EU’s payment infrastructure.
Van Overtveldt’s report represents a significant shift from his previous stance on cryptocurrencies. In 2023, following the banking turmoil surrounding Silicon Valley Bank and Signature Bank, the lawmaker called for tighter restrictions on digital assets. The crisis highlighted vulnerabilities in the crypto ecosystem, particularly after stablecoin issuer Circle held roughly $3.3 billion in reserves at Silicon Valley Bank when it collapsed, briefly causing USDC to lose its dollar peg.
The committee’s recommendations reflect a broader warming toward regulated stablecoins among EU policymakers. The report welcomed euro-denominated stablecoins under MiCA and encouraged their development to support faster and cheaper cross-border payments. According to Cointelegraph, this stance aligns with recent softening from traditional finance critics, including former Bank for International Settlements general manager Agustín Carstens, who has moderated his historically skeptical position on digital assets.
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The report argued that euro-denominated stablecoins could complement tokenized commercial bank deposits and wholesale central bank digital currencies while strengthening the competitiveness of EU financial markets and the international role of the euro. This vision aligns with ECON’s broader strategy for Europe’s digital money ecosystem. On Tuesday, the same committee backed legislation for a digital euro, with lawmakers arguing that public and private forms of digital money should coexist rather than compete.
Van Overtveldt first presented a draft of the report in February before months of negotiations and amendments by ECON members. The earlier version largely focused on MiCA’s existing framework, including stablecoin classifications and legal certainty for multi-issued stablecoins. The committee-approved version expanded the scope significantly, urging consistent application of MiCA across the EU to preserve a level playing field for crypto firms.
The report also warned member states against introducing national requirements beyond MiCA that could fragment the bloc’s digital asset industry. This concern reflects ongoing tensions within the EU, where some countries have pursued their own crypto regulations despite the bloc-wide framework. This follows a pattern seen in related regulatory moves where jurisdictions balance centralized frameworks with local requirements.
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The European Commission is already reviewing MiCA. In May, the Commission launched a public consultation seeking feedback on whether the framework should be expanded to cover DeFi, staking, lending, NFTs and tokenized financial assets. The consultation also reopened debate over the regulation’s ban on interest-bearing stablecoins, a contentious issue among crypto industry participants.
The timing of Parliament’s recommendations is significant as MiCA’s transitional period ends July 1. After this date, crypto asset service providers generally must hold authorization under the regulation to continue operating across the EU. The deadline has prompted many firms to accelerate compliance efforts and seek licenses in key jurisdictions.
The Parliament’s support for a broader regulatory framework suggests the EU is moving toward more comprehensive digital asset oversight rather than retreating from crypto regulation. However, the nonbinding nature of the resolution means the Commission retains discretion over which recommendations to implement. The outcome of the July 7 plenary vote will provide clearer signals about Parliament’s unified position on the future of crypto regulation in Europe.
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