The European Parliament’s Economic and Monetary Affairs Committee (ECON) has called on the European Commission to consider whether new regulations are needed for lending, borrowing, staking, NFTs and decentralized finance in the crypto asset market. The committee also recommended promoting tokenization in financial services and supporting euro-denominated stablecoins.
Committee report heads to plenary vote
A report prepared by Belgian MEP Johan Van Overtveldt and submitted by the ECON committee was brought before the European Parliament for a plenary vote on Friday. ECON, a central committee tasked with shaping EU financial legislation, used the report to issue its formal advice on digital asset regulation to the European Commission.
The report is scheduled for a parliamentary vote on July 7. If approved, it would establish the Parliament’s official position on digital asset policy. However, the MiCA framework itself will not be directly amended, nor will the vote create any new legal obligations.
The committee emphasized that MiCA must be applied consistently across all EU member states to ensure a level playing field for crypto companies within the Union.
Support for euro stablecoins gains traction
The report signals a notable shift in how regulators approach stablecoins. The committee welcomed euro-denominated stablecoins under the MiCA framework and encouraged their development to support the EU’s payments infrastructure.
The text argues that euro stablecoins could complement tokenized commercial bank deposits and wholesale central bank digital currencies, making cross-border payments faster and more cost-effective. Wider adoption, it adds, could enhance the competitiveness of EU finance markets and bolster the euro’s international role.
The committee endorsed the view that public and private digital currency solutions can coexist, rather than directly compete with each other.
Prospects for broader MiCA review
The committee’s approach aligns with the European Commission’s ongoing review of the MiCA framework. In May, the Commission launched a public consultation to gather feedback on whether services like DeFi, staking, lending, NFTs and tokenized financial assets should fall within the current regulatory perimeter. This process has also reopened debate on the ban of interest-bearing stablecoins.
Glossary: MiCA is the EU’s regulatory framework for crypto asset markets. DeFi refers to blockchain-based financial applications that operate without intermediaries.
The committee’s report also warns member states against introducing rules that go beyond MiCA, cautioning that such moves could fragment the EU’s digital asset market and undermine the benefits of a single marketplace for crypto firms.
Deadline for transition period: July 1
The MiCA transition period concludes on July 1. After this date, crypto asset service providers must obtain authorization under the new regulation to operate throughout the EU.
In 2023, Johan Van Overtveldt had called for stricter limitations on crypto assets following the banking turmoil that impacted Silicon Valley Bank, Signature Bank, and Silvergate Bank. Notably, Circle, the issuer of USDC, had $3.3 billion in reserves at Silicon Valley Bank. The bank’s collapse temporarily caused USDC to lose its dollar peg.
