ESMA Unveils Targeted MiCA Amendments for Crypto Regimes

The European Securities and Markets Authority (ESMA) has published its response to the European Commission's public consultation on the review of the Markets in Crypto-Assets Regulation (MiCA). The proposal includes targeted amendments covering token classification, decentralised finance, stablecoins, staking, lending and borrowing, supervisory powers, and the development of tokenised capital markets.

ESMA aims to simplify the framework while improving investor protection and addressing business models such as DeFi. The proposals focus on removing legal uncertainty and preventing regulatory arbitrage, ensuring simplification and burden reduction for market participants.

The proposal suggests introducing a new regulated crypto-asset service covering CASPs that provide clients with access to decentralised protocols or DeFi services. This gatekeeper service would apply where a CASP provides a technical interface enabling clients to interact with DeFi protocols, facilitates transaction routing or interaction with smart contracts, or otherwise acts as an intermediary between clients and decentralised financial services.

ESMA proposes stricter rules for the marketing of crypto-assets, particularly when they are promoted by influencers and third parties. It also invites the Commission to subject staking services provided by authorised CASPs to targeted conduct, disclosure, and safeguarding requirements.