In a significant move for the crypto industry, the European Parliament has approved its new slate of commissioners, including those who are likely to have digital assets within their purview. The approval comes as the EU’s comprehensive Markets in Crypto Assets (MiCA) legislation is set to come into full force by the end of December, ushering in a new era of crypto regulation in the bloc.
Commissioners Set to Oversee Crypto
While no commissioner role is solely dedicated to crypto, several key figures are expected to play a critical role in shaping the EU’s approach to digital assets:
Stéphane Séjourné (France)
As the Executive Vice-President for Prosperity and Industrial Strategy, Séjourné will oversee matters related to industry, SMEs, and the single market. His role could bring crypto under his oversight, particularly in terms of fostering innovation and addressing regulatory barriers.
“We had previous relations with Stéphane Séjourné during the MiCA negotiation, and at that stage, he was quite open to innovation,” noted Faustine Fleuret, president of Web3 industry group ADAN.
Maria Luís Albuquerque (Portugal)
Albuquerque, the incoming Commissioner for Financial Services and the Savings and Investment Union, will be tasked with enforcing financial sector rules, improving the EU’s supervisory system, and advancing digital finance and payments. She will also oversee the enforcement of the bloc’s anti-money laundering package, which targets large cash payments and crypto firms, among others.
According to industry insiders, if the Commission were to propose new crypto-specific legislation, such as a “MiCA 2.0” covering issues like staking, lending, and decentralized finance (DeFi), it would likely fall under Albuquerque’s remit.
Henna Virkkunen (Finland)
Virkkunen, who will be in charge of tech, sovereignty, security, and democracy, is another key figure to watch. Her role encompasses boosting AI innovation, enhancing law enforcement capabilities through digital technologies, strengthening cybersecurity, and promoting online safety.
Ensuring MiCA Implementation and Beyond
With MiCA set to come into full force by December, the newly appointed commissioners will have their work cut out for them in ensuring the smooth implementation of the landmark legislation. Industry advocates stress the importance of ongoing dialogue between regulators and stakeholders to foster an environment that encourages innovation while mitigating risks.
“What the industry is really wanting is the EU to continue to discuss with its international partners and ensure that the rules that are being developed across the globe are, to the extent possible, interoperable, consistent, and have the same goals,” emphasized Mark Foster, EU policy lead at the Crypto Council for Innovation.
Beyond MiCA, the commissioners have also been tasked with exploring whether additional regulation is needed in areas such as DeFi, crypto lending and borrowing, and non-fungible tokens (NFTs). A report on the latest crypto developments and an assessment of the necessity and feasibility of further regulation is expected in the near future.
Other key decisions on the horizon include the fate of the EU’s Distributed Ledger Technology pilot regime, the establishment of a legal framework for a potential digital euro, and an analysis of member states’ legislation for financial asset tokenization.
Balancing Innovation and Regulation
As the EU embarks on this new chapter of crypto regulation, striking the right balance between fostering innovation and protecting consumers and financial stability will be crucial. The newly approved commissioners will play a pivotal role in shaping this balance and setting the tone for the bloc’s approach to digital assets in the years to come.
While the immediate focus will be on ensuring the smooth implementation of MiCA, the potential for further regulatory action looms on the horizon. Industry participants will be closely watching the moves of key figures like Séjourné, Albuquerque, and Virkkunen, as their decisions and priorities could have far-reaching implications for the future of crypto in the EU and beyond.
As the crypto landscape continues to evolve at a rapid pace, the EU’s ability to adapt and respond to new challenges and opportunities will be put to the test. The coming months and years will be critical in determining whether the bloc can cement its position as a global leader in crypto regulation while still nurturing the growth and potential of this transformative technology.
