The European Securities and Markets Authority said on September 30, 2026 that it has responded to the European Commission's public consultation on the review of the Markets in Crypto-Assets Regulation, recommending changes to simplify the framework while strengthening investor protection and covering newer business models such as decentralized finance, staking, lending and borrowing.
What ESMA wants changed for investors
ESMA said it is proposing new safeguards in areas where, in its view, investors face risks not fully covered by the current framework. These include 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.
According to the regulator, the measures would give investors clearer information on costs, risks, rewards, collateral arrangements and potential losses before investment decisions are made.
Supervision, fraud and non-compliant stablecoins
ESMA recommended strengthening supervisory powers to address risks arising from unauthorized services, online fraud and non-compliant stablecoins. That includes enhancing the EU's capacity to detect, block and deactivate fraudulent websites and to freeze crypto assets in cases of suspicion of market abuse or terrorist financing.
The authority also asked for reinforced powers over third-country firms that solicit EU investors without being authorized under MiCA, and for explicit rules preventing regulated crypto firms from offering services linked to stablecoins that do not comply with MiCA requirements. ESMA said such measures would support faster and more consistent supervisory action across the EU and reduce opportunities for regulatory arbitrage.
DeFi, token classification and simplification
As activity around decentralized finance and stablecoins grows, ESMA said it advocates clearer criteria for determining which activities can be considered genuinely decentralized, and recommended creating a new regulated crypto-asset service for firms that provide users with access to DeFi protocols.
ESMA also suggested adopting rules on how crypto-assets should be classified, including new products such as hybrid tokens, and granting ESMA the ability to issue binding opinions on token classification so that the same products are treated consistently in the EU market.
In line with what it described as the EU's simplification and burden reduction agenda, ESMA proposed streamlining parts of the existing rules: simplifying crypto-asset white-paper notification procedures, reducing duplicative authorization requirements for some regulated firms, and improving the consistency of prudential requirements.
Beyond the MiCA review
Looking beyond the immediate MiCA review, ESMA said there is a need for a framework for tokenized securities and on-chain settlement that can support an integrated European tokenized capital market and facilitate cross-border activity in the future.
The response was published under reference ESMA75-113276571-1721, titled "Response to the European Commission's consultation on the review of MiCA regulation", dated 30/09/2026.
Key facts and where they come from
- ESMA responded to the European Commission's consultation on the MiCA review.
has responded to the European Commission's public consultation on the review of Markets in Crypto-Assets Regulation (MiCA)
- It wants stricter marketing rules covering influencer promotion.
stricter rules for the marketing of crypto-assets, particularly when they are promoted by influencers and third parties;
- ESMA seeks powers to block fraudulent sites and freeze crypto assets.
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;
- It proposes a new regulated service for firms giving access to DeFi protocols.
It also recommends creating a new regulated crypto asset service for firms that provide users with access to DeFi protocols.
- ESMA asks for binding opinions on token classification.
granting ESMA the ability to issue binding opinions on token classification to ensure the same products are treated consistently within the EU market
- Simplification proposals include white-paper notification procedures.
simplifying crypto-asset white-paper notification procedures, reducing duplicative authorisation requirements for some regulated firms, and improving the consistency of prudential requirements
- ESMA flags the need for a tokenized securities and on-chain settlement framework.
the need for a framework for tokenised securities and on-chain settlement that can support the development of an integrated European tokenised capital market