Regulations

Story: EU Eyes MiCA Overhaul as MEPs Push to Bring DeFi and NFTs Under Brussels Rules

By Pankaj K

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What MiCA Missed. DeFi is probably the hardest one to pin down. Unlike centralized exchanges or token issuers — the…

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The Innovation vs. Oversight Tension. Here's the hard part. Writing rules for DeFi without killing it is genuinely difficult.

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What Comes Next for the Industry. The Commission's response to the MEP request will shape what happens next.

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The EU wants more. Members of the European Parliament have formally asked the European Commission to look hard at decentralized finance, staking, lending, and non-fungible tokens…

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MiCA was supposed to be the big fix. When it was adopted, the regulation brought long-overdue clarity to cryptocurrency markets across EU member states, creating a harmonized…

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DeFi is probably the hardest one to pin down. Unlike centralized exchanges or token issuers — the kinds of entities MiCA handles reasonably well — decentralized protocols don't…

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MEPs want the Commission to sort through all of that. Their request for a comprehensive assessment is a preliminary step, not a legislative move. But it's a meaningful one.

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Here's the hard part. Writing rules for DeFi without killing it is genuinely difficult. The EU has to understand complex, fast-moving financial products well enough to regulate…

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Consumer protection is the obvious driver. DeFi platforms have seen exploits, rug pulls, and outright fraud at a scale that's hard to defend.

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Read also: Solana DeFi App Ships Cross-Chain Swaps in Builder Spotlight

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Stablecoin adoption and DeFi participation across Europe have grown sharply in recent years, which makes the regulatory vacuum feel more urgent.

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The Commission's response to the MEP request will shape what happens next. Stakeholders across the crypto industry — DeFi protocol developers, NFT platforms, staking providers —…

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And the stakes are global. The EU's role in shaping financial regulation means that whatever framework emerges from this assessment won't stay in Europe.

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No specific proposals have been disclosed. The Commission hasn't committed to a timeline. It's unclear yet whether the assessment will lead to a standalone regulation, an…

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Read also: Spark Drops $150 Million Into Uniswap v4 to Build Shared DeFi Liquidity

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