What happened
ESMA has recommended changes to the EU's Markets in Crypto-Assets Regulation (MiCA) to enhance investor protection and address risks from emerging services like DeFi, staking, and lending. The proposals include stricter marketing rules, increased transparency, and reinforced supervision.
Named in this item
STATUS
NAME
ISO
PROGRAM
IDENTIFIER
European Securities and Markets Authority
Organization, regulator EU MiCA —
Organization, regulator EU MiCA —
What compliance teams should check
- Review MiCA regulatory developments and ESMA recommendations
- Assess exposure to DeFi, staking, and lending services
- Update marketing and disclosure practices for crypto-assets
- Enhance investor protection measures in line with proposed changes
FOR COMPLIANCE TEAMS
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ESMA calls for changes to make MiCA clearer, safer and ready for emerging services 30 September 2026 Digital Finance and Innovation Investor protection The European Securities and Markets Authority (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. Further information: Cristina Bonillo Senior Communications Officer press@esma.europa.eu 30/09/2026 ESMA75-113276571-1721 Response to the European Commission's consultation on the review of MiCA regulationESMA, 30 Sep 2026, 13:50 UTC, esma.europa.eu