European Parliament adopts digital assets report urging review of DeFi and staking

The European Parliament has adopted a formal policy position on digital assets that calls for further assessment of areas still only partly addressed by the EU’s Markets in Crypto-Assets framework, including DeFi (decentralized finance), staking, crypto lending, and NFTs (non-fungible tokens). The paper, titled “Digital assets — challenges to the competitiveness and soundness of the EU financial system,” asks the European Commission to consider whether those activities should be brought more clearly within the bloc’s regulatory perimeter, while also pressing for consistent application of MiCA across member states to avoid market fragmentation caused by divergent national rules. It says properly regulated euro-denominated stablecoins could support payments and tokenized finance, while warning that wider use of dollar stablecoins such as USDT and USDC could weaken the euro’s role and complicate European Central Bank monetary policy. The report does not change MiCA or impose new legal obligations, but it makes the document Parliament’s formal stance and reinforces a broader debate in Brussels over whether MiCA should eventually expand to cover additional crypto activities.