The European Parliament’s economic affairs committee has urged the European Commission to assess whether crypto lending and borrowing, staking, non-fungible tokens (NFTs) and decentralized finance (DeFi) should be regulated.
The recommendations were part of a report tabled Friday for plenary vote. It also called for promoting tokenization across financial services, encouraging euro-denominated stablecoins and assessing whether additional crypto activities should be regulated under the European Union’s Markets in Crypto-Assets Regulation (MiCA).
Drafted by Belgian Member of the European Parliament Johan Van Overtveldt, the report is an own-initiative resolution by the Committee on Economic and Monetary Affairs (ECON) that outlines recommendations for the Commission on digital asset regulation.
It will next go before the European Parliament for a vote, expected July 7. If adopted, the resolution would become Parliament’s official position on digital assets policy but would not amend MiCA or create new legal obligations.
The legislative timeline shows the committee’s approval of the report and its referral for a plenary vote. Source: European Parliament
Related: European Parliament throws support behind digital euro
EU warms up to regulated stablecoins
The recommendations also reflect an evolving view of stablecoins among policymakers. Days after former Bank for International Settlements general manager and longtime crypto critic Agustín Carstens softened his stance on stablecoins, the report welcomed euro-denominated stablecoins under MiCA and encouraged their development to support the bloc’s payment sector.
In 2023, Van Overtveldt called for tighter restrictions on cryptocurrencies following the banking turmoil surrounding Silicon Valley Bank, Signature Bank and Silvergate Bank. The crisis was also closely tied to stablecoins, as USDC issuer Circle held roughly $3.3 billion of its reserves at Silicon Valley Bank when it collapsed, briefly causing USDC to lose its dollar peg.
Van Overtveldt likened cryptocurrencies…
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