The European Parliament’s economic affairs committee has recommended that the European Commission conduct a formal assessment of whether decentralized finance, staking, non-fungible tokens and crypto lending should fall under regulatory oversight. According to reporting by CoinTelegraph, the non-binding resolution — drafted by Belgian MEP Johan Van Overtveldt — signals growing appetite among EU lawmakers to expand the scope of crypto regulation beyond the current Markets in Crypto-Assets Regulation (MiCA) framework.
The Committee on Economic and Monetary Affairs (ECON) approved the own-initiative report on Friday, with a full Parliament vote expected on July 7. If adopted, the resolution would formalize Parliament’s policy position on digital assets but carry no direct legislative force. The timing is significant: MiCA’s transitional period ends July 1, forcing crypto service providers across the EU to obtain authorization or cease operations.
Beyond MiCA: Mapping the Regulatory Frontier
The recommendations reveal a deliberate strategy to address gaps in Europe’s existing crypto rulebook. MiCA currently regulates stablecoin issuers, crypto asset service providers and certain custodians, but leaves DeFi protocols, staking arrangements and NFT marketplaces largely outside its remit. The Commission is already reviewing whether these activities warrant formal regulation.
Van Overtveldt’s report acknowledges that the crypto industry has evolved faster than regulators initially anticipated. Staking services, which lock user funds into proof-of-stake networks in exchange for yield, occupy a grey zone between traditional deposit-taking and unregulated yield products. DeFi lending protocols operate similarly to banks but without banking licenses. NFTs, despite their association with digital art, now underpin real-world asset tokenization.
The committee also urged consistent MiCA enforcement across all member states. Lawmakers warned against national regulators introducing requirements that exceed the EU framework, a concern that reflects fragmentation already emerging in how countries like Poland have approached crypto licensing.
Stablecoins Signal a Policy Pivot
Notably, the report embraces euro-denominated stablecoins as infrastructure for EU payments rather than threats to financial stability. This represents a significant shift from 2023, when banking sector turmoil forced a reassessment of crypto’s role in traditional finance.
The stance aligns with a broader softening among global policymakers. Earlier this month, Agustín Carstens, the former general manager of the Bank for International Settlements and longtime crypto skeptic, acknowledged that stablecoins could serve legitimate functions under strict oversight. Van Overtveldt himself took a harder line during 2023’s banking crisis, likening cryptocurrencies to drugs after the collapse of Silicon Valley Bank and Signature Bank, which exposed Circle’s exposure to traditional banking infrastructure through its USDC reserves.
The report argues that privately issued stablecoins denominated in euros could complement central bank digital currencies and support faster cross-border payments. This public-private model differs from earlier proposals that viewed CBDCs and commercial stablecoins as competitive rather than complementary.
The Regulatory Momentum
Parliament’s move reflects the Commission’s own reassessment. A public consultation launched in May specifically asked whether MiCA should expand to cover DeFi, staking, lending, NFTs and tokenized financial assets. The same consultation reopened debate over MiCA’s current prohibition on interest-bearing stablecoins — a ban that increasingly appears at odds with how stablecoin issuers actually operate.
The political calendar matters here. With MiCA’s transitional period ending in days, any expansion of the regulation would take months or years to negotiate and implement. The committee’s resolution serves as a signal to the Commission that Parliament expects action, even if the legal pathway remains unclear.
The resolution also reflects confidence that crypto regulation need not stifle innovation. Rather than blanket prohibition, lawmakers are asking for proportionate oversight that distinguishes between consumer-facing services and protocol-level activities, and between utility tokens and assets with financial characteristics.
Whether Parliament’s vote on July 7 translates into Commission action remains an open question. But the trajectory is clear: Europe’s regulators are moving from containing crypto risk toward defining the conditions under which digital assets can function within the financial system.