Paris, 30 September 2026
Changes to the Markets in Crypto-Assets Regulation (MiCA) should strengthen investor protection and regulate firms providing access to decentralised finance (DeFi), which delivers financial services through blockchain protocols, the European Securities and Markets Authority (ESMA) recommends. Its proposals also address influencer marketing, staking, lending, fraud and non-compliant stablecoins.
ESMA, the EU’s financial markets regulator and supervisor, has responded to the European Commission’s public consultation on the review of Markets in Crypto-Assets Regulation (MiCA). ESMA’s recommendations aim to simplify the framework while improving investor protection and addressing innovative business models, such as decentralised finance (DeFi), staking, lending and borrowing.
Enhancing investor protection
ESMA proposes new safeguards in areas where investors face risks that are not fully covered under the current framework, including:
- stricter rules for the marketing of crypto-assets, particularly when they are promoted by influencers and third parties;
- greater transparency in costs; and
- proportionate requirements for staking, lending and borrowing, including through disclosure obligations.
These measures would provide clearer information on costs, risks, rewards, collateral arrangements, and potential losses before investment decisions are made.
Reinforcing supervision
ESMA recommends strengthening supervisory powers and address the risks arising from unauthorised services, online fraud and non-compliant stablecoins, by:
- enhancing the EU’s capacity to detect, block and deactivate fraudulent websites and freeze crypto assets in cases of suspicion of market abuse or terrorist financing;
- obtaining reinforced supervisory powers to deal with third-country firms which solicit EU investors without being authorised under MiCA, and;
- introducing explicit rules to prevent regulated crypto firms from offering services linked to stablecoins that do not comply with MiCA requirements.
These measures would support faster and more consistent supervisory action across the EU, better protecting investors, and reducing opportunities for regulatory arbitrage.
Evolving towards De-Fi and improving crypto-asset classification
As crypto markets evolve and activity around decentralised finance (DeFi) and stablecoins grow, ESMA advocates for the introduction of clearer criteria for determining which activities can be considered genuinely decentralised. It also recommends creating a new regulated crypto asset service for firms that provide users with access to DeFi protocols.
To reduce uncertainty and support harmonised supervision across the EU, ESMA suggests adopting rules on how crypto-assets should be classified, including new products such as hybrid tokens. It also includes granting ESMA the ability to issue binding opinions on token classification to ensure the same products are treated consistently within the EU market.
Simplification and burden reduction
In line with the EU’s simplification and burden reduction agenda, ESMA proposes to streamline parts of the existing rules, including simplifying crypto-asset white-paper notification procedures, reducing duplicative authorisation requirements for some regulated firms, and improving the consistency of prudential requirements.
Development of an integrated European tokenised capital markets
Finally, and looking beyond the immediate MiCA review, ESMA highlights the need for a framework for tokenised securities and on-chain settlement that can support the development of an integrated European tokenised capital market and facilitates cross-border activity in the future.
Read the response
Related Documents
Source – ESMA calls for changes to make MiCA clearer, safer and ready for emerging services