What Changed
- Recommended regulatory measures for third-country multi-issuer stablecoin schemes and a review of minimum reserve deposit requirements.
- Proposed extending regulatory coverage to crypto-asset lending and decentralised finance (DeFi) access mechanisms.
- Advocated clarifying boundaries between MiCA and directives such as MiFID, CRD, and PSD2/PSD3/R to streamline crypto-asset classification.
The European Banking Authority (EBA) has published its response to the European Commission's targeted consultation on reviewing Regulation (EU) 2023/1114 on markets in crypto-assets (MiCA). The guidance affects issuers of asset-referenced tokens (ARTs) and electronic money tokens (EMTs), crypto-asset service providers (CASPs), financial institutions, and third-country entities seeking to operate within the European Union crypto-asset market.
While assessing that existing requirements for ART and EMT issuers are broadly appropriate, the EBA highlighted emerging market risks and proposed priorities for the European Commission's review:
1. Multi-Issuer Schemes and Reserve Rules: The EBA recommends legislative changes to address significant risks posed by third-country multi-issuer schemes. It also suggests reviewing reserve requirements—specifically the minimum reserves held as bank deposits—while maintaining effective risk management.
2. Scope and Asset Classification: Addressing challenges in classifying crypto-assets, the EBA called for clearer definitions and scope boundaries. This includes clarifying interactions between MiCA and other EU financial legislation, such as the Markets in Financial Instruments Directive (MiFID), the Capital Requirements Directive (CRD), and PSD2/PSD3/R, to reduce avoidable costs and market entry delays for firms.
3. Crypto Lending and DeFi: The EBA encouraged regulating crypto-asset borrowing and lending, including situations where CASPs facilitate access to decentralised finance (DeFi) protocols, to safeguard consumers.
4. Reporting and Governance: Recommendations include reviewing supervisor reporting frameworks for issuers and CASPs, as well as addressing multi-function groups and tokenised deposits.
Under Article 8(1)(b) and Article 9(2) of the EBA Founding Regulation, the EBA holds mandates to foster supervisory consistency, prevent regulatory arbitrage, and monitor financial innovation. Regarding statutory milestones, Titles III and IV of MiCA (governing ARTs and EMTs) entered into application on 30 June 2024, and MiCA entered into application generally on 30 December 2024. As of 01 September 2026 (the EBA's reference date), 39 EMTs have been issued and 0 ARTs have been authorised under MiCA.
Who May Be Affected
Crypto-asset issuers, crypto-asset service providers (CASPs), financial institutions, and third-country stablecoin and lending protocol operators.
Cross-Border Context
Affects crypto market participants across the European Union as well as non-EU entities offering cross-border multi-issuer tokens or decentralised lending access within the EU.
What to check next
- Track subsequent legislative review proposals issued by the European Commission.
- Monitor further technical standards and guidelines released by the EBA regarding MiCA application.
This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.
Prepared automatically with AI assistance from the official sources linked on this page. Translations and explanations do not replace the official text.