The European Commission is seeking industry feedback on whether to extend its Markets in Crypto-Assets regulation to cover decentralised finance, non-fungible tokens, staking, lending, prediction markets, and tokenized deposits, which are currently outside MiCA's scope. The consultation, open through August 31, 2026, responds to policymaker concerns that the rapid growth of DeFi has outpaced the assumptions underlying MiCA's current exemption for fully decentralized services. MiCA currently exempts fully decentralized services from regulation, but a key obstacle is the lack of consensus on how to define decentralization and identify protocols that genuinely operate without centralized control.
European Commission Explores Certification Schemes for DeFi Protocols
Regulators are weighing how to determine whether protocols are truly decentralized and whether crypto firms should only connect users to certified or vetted DeFi applications. The consultation further explores certification schemes for DeFi protocols, smart contracts, and non-custodial wallet providers.
Regulators Assess MiCA Versus MiFID Framework for Crypto Activities
Policymakers are revisiting longstanding regulatory gaps around crypto lending, borrowing, NFTs, prediction markets, and perpetual futures. The consultation examines whether some activities should fall under MiCA or the stricter MiFID framework.
European Commission Reviews Tokenized Deposit Use Cases Under Existing Banking Framework
Regulators are assessing a broad set of use cases for tokenized deposits ranging from cross-border payments to atomic securities settlement. The review considers whether the existing banking framework adequately covers these activities.
FAQ
What is the European Commission consulting on regarding MiCA?
The European Commission is seeking industry feedback on whether to extend its Markets in Crypto-Assets regulation to cover decentralised finance, non-fungible tokens, staking, lending, prediction markets, and tokenized deposits, which are currently outside MiCA's scope.
When does the MiCA consultation close?
The consultation is open through August 31, 2026.
Why is the European Commission reviewing MiCA's scope?
Policymakers are concerned that the rapid growth of DeFi has outpaced the assumptions underlying MiCA's current exemption for fully decentralized services, and there is no consensus on how to define decentralization and identify protocols that genuinely operate without centralized control.
