European Parliament Considers Laundry List of Areas MiCA Doesn’t Touch

A study finds that MiCA does not adequately consider the nuances of different DeFi protocols — plus, it leaves out staking, lending and NFTs altogether

article-image

European Parliament President Roberta Metsola | Alexandros Michailidis/Shutterstock modified by Blockworks

share

As the European Union moved ahead and formally signed its Markets in Crypto Assets (MiCA) policy package into law, lawmakers also took time to consider areas where the regulation may be lacking. 

In a study commissioned by the European Parliament, legal and financial experts noted that MiCA leaves some gaps in crypto regulation, particularly when it comes to token classification, staking and NFTs, among other areas. The study was written by four law and finance professors from international universities. 

MiCA does not adequately consider the nuances between DeFi protocols and their respective levels of decentralization, authors wrote. 

“Partial decentralization, even intensified decentralization as in the case of (apparently) ‘fully decentralized services,’ provides a number of additional challenges,” the report said. 

“Decentralization enhances challenges with regard to defining regulated activities, risk management and ensuring business continuity in insolvency and/or a general market crisis in crypto.” 

The report also references US policy, noting that the EU should consider the US ’s Howey Test when classifying tokens, especially when it comes to lending and staking protocols. Specifically, BlockFi’s settlement with the US regulator over its Earn product raises interesting points about how investors are granted interest and their “reasonable expectation of profit.”  

Industry members and lawmakers have admitted there are areas where MiCA falls flat for months ahead of the law’s enactment. 

“We think that MiCA is a great step forward for Europe, we don’t agree with everything that’s in MiCA, but that doesn’t mean that it doesn’t get a lot right,” Lee Scheider, general counsel at Ava Labs, told Blockworks ahead of MiCA’s adoption. “You can notice with MiCA that they actually do sort of understand that the nature of the asset matters.”  

The EU Parliament voted 517 in favor and 38 against passing MiCA during their late April vote.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template.png

Research

The march toward an interoperable and onchain-by-default internet depends on reliable messaging and value transfer across heterogeneous domains. Crosschain protocols now process >$1.3T in combined annual transfer volume and secure tens of millions of user interactions, yet no single design dominates.

article-image

The crypto investor once known as “Bitcoin Jesus” will avoid trial under a deferred prosecution deal

by Blockworks /
article-image

The €7 million investment marks Luxembourg’s first sovereign exposure to Bitcoin

by Blockworks /
article-image

The chain-agnostic app layer aims to reward players of any game, in any token

article-image

The exchange will now offer direct access to CME futures across commodities, equities, and currencies through its US platform

by Blockworks /
article-image

The exchange’s full approval from the UAE’s Securities and Commodities Authority marks a regulatory milestone for global crypto oversight

by Blockworks /
article-image

Founded by Coinbase and Cruise veterans, CipherOwl plans to bring artificial intelligence to blockchain monitoring and risk detection

by Blockworks /