The European Parliament adopted a report calling for an assessment of whether the current MiCA framework is sufficient to regulate the digital asset market or whether it requires further expansion.
During its plenary session, the European Parliament approved the report Digital Assets: Challenges for the Competitiveness and Integrity of the European Union’s Financial System. The document examines the impact of digital assets on the EU’s competitiveness and financial stability. While it doesn’t amend existing legislation, it offers recommendations for the further development of the regulatory framework following the implementation of the Markets in Crypto-Assets (MiCA) Regulation.
The report calls on the European Commission to assess MiCA’s effectiveness based on its practical implementation and determine whether the EU’s regulatory framework should be expanded further. It also urges the Commission to pay particular attention to market segments that are currently subject to limited oversight or remain outside MiCA’s scope, including:
- decentralized finance (DeFi);
- real-world asset (RWA) tokenization;
- non-fungible tokens (NFTs).
The authors of the report also stressed the need to strike a balance between fostering innovation, safeguarding financial stability, protecting investors, and preserving the integrity of the European market. According to lawmakers, the EU should regularly review its regulatory framework to ensure it keeps pace with technological developments and enables European companies to remain competitive in the global digital asset market.
The report is nonbinding and doesn’t amend the MiCA Regulation. However, it could serve as the basis for future legislative proposals from the European Commission.
The initiative also coincided with the EU’s ongoing review of the regulatory framework. In May, the European Commission launched a targeted consultation to assess MiCA’s implementation, with the consultation set to remain open through September 30.
