Banking Watchdog Weighs In as Brussels Reviews Its Crypto Rulebook

The European Banking Authority (EBA) has formally submitted its response to the European Commission’s targeted consultation on the review of the Markets in Crypto-Assets Regulation (MiCAR). The exercise forms part of the EU's scheduled assessment of its digital finance rulebook, examining how the comprehensive framework for crypto-asset service providers and token issuers is functioning in practice.

MiCAR established the world’s first major regulatory framework for digital assets, imposing strict governance and reserve requirements on crypto firms operating across the single market. For market participants and investors, the feedback gathered during this review will signal where Brussels might adjust compliance expectations, capital buffers, or supervisory boundaries for digital asset platforms.

In the EU institutional rhythm, enacting major legislation is rarely the final act; it is merely the trigger for a future review process. Consultation rounds allow technical watchdogs like the EBA to report back on how theoretical legal texts fare when applied to actual markets, giving the Commission the necessary technical ammunition to refine rules before minor friction points become permanent legal headaches.

The European Commission will analyze the feedback received from the EBA alongside submissions from other industry stakeholders. Should the Commission conclude that revisions to the framework are needed, it will prepare a formal legislative proposal to amend MiCAR, opening a new round of negotiations with the European Parliament and national governments in the Council.