The report explicitly supports euro-denominated e-money tokens under MiCAR and their growth to enhance EU payment innovation, making e-money issuance and regulation the primary focus.
The report endorses the ECB's wholesale CBDC work and supports DLT projects for wholesale central bank settlement, making CBDC development and infrastructure a significant secondary concern.
Specialism
The report emphasizes stronger supervisory and enforcement tools to prevent crypto-assets from being used to evade AML/CTF rules and sanctions, though the primary focus is on innovation and regulatory framework development rather than specific AML/CTF obligations.
The report expresses concern about crypto-assets evading sanctions and calls for enhanced monitoring, but sanctions content is secondary to the broader digital assets innovation framework discussion.
Investment and technological development must stay in the EU, with payment innovation and competitive financial markets, argues Parliament in a text adopted on Tuesday.
Pipeline Progress
🔄 Pipeline Journey
⏱
10s
total
✓
Queued09:34:32
+0s
✓
Metadata09:34:32
+0s
✓
S3 Content09:34:32
+0s
✓
Extracted09:34:32
+5s
✓
LLM Gen09:34:37
+5s
✓
Stored09:34:42
TITLE: European Parliament Supports Innovation-Friendly Digital Assets Environment With Enhanced Monitoring
BODY:
On July 7, 2025, the European Parliament adopted a non-legislative report on digital assets, approving it with 390 votes in favour, 86 against, and 134 abstentions. The report, prepared by the Committee on Economic and Monetary Affairs (ECON), outlines Parliament's position on fostering innovation in digital assets while maintaining robust regulatory oversight and financial stability.
The report acknowledges the European Union's early adoption of the Markets in Crypto-Assets Regulation (MiCAR) and distributed ledger technology (DLT) applications in finance. Parliament welcomes the rise of euro-denominated e-money tokens under MiCAR and supports their further growth to enhance EU payment innovation and financial market competitiveness. It also endorses the European Central Bank's work on a wholesale central bank digital currency (CBDC) option enabling cash and assets to be settled on a shared ledger alongside tokenised bank deposits and stablecoins.
Parliament emphasises that tokenised instruments must carry identical rights to traditional securities to prevent regulatory arbitrage and protect investors. It stresses that DLT and asset tokenisation can support the savings and investment union by reducing market fragmentation and building more efficient capital markets, with interoperability as a key requirement. However, Parliament expresses concern about the EU's reliance on non-EU DLT infrastructure providers and the rapid growth of US dollar stablecoins, which could weaken Europe's control over its currency and financial stability. The report urges stronger supervisory and enforcement tools to prevent crypto-assets being used to evade anti-money laundering and counter-terrorism financing (AML/CTF) rules and sanctions. Parliament also calls for harmonised liquidity and crisis-management rules and welcomes ongoing work on the digital euro, supporting both retail and wholesale DLT projects for wholesale central bank settlement.
Digital assets: MEPs support an innovation-friendly, well monitored environment | News | European Parliament Launch the search European Parliament Digital assets: MEPs support an innovation-friendly, well monitored environment Press Releases Plenary session ECON 4 hours ago Share this page: Facebook X LinkedIn WhatsApp Investment and technological development must stay in the EU, with payment innovation and competitive financial markets, argues Parliament in a text adopted on Tuesday. The non-legislative report, adopted by 390 votes in favour, 86 against and with 134 abstentions, notes that the EU was among the first jurisdictions to adopt a dedicated crypto-assets regime (MiCAR) and to apply distributed ledger technology (DLT) in finance. Tokenisation and stablecoins "Tokenisation" refers to the digital representation of financial instruments on distributed ledgers. Tokenised instruments must carry the same rights as traditional securities, to prevent regulatory arbitrage and protect investors, state MEPs. They welcome the European Central Bank's work on a wholesale central bank digital currency (CBDC) option that would allow cash and assets to be settled on a shared ledger, alongside tokenised bank deposits and stablecoins. Under MiCAR, stablecoins fall into two categories: asset-referenced tokens and e-money tokens. MiCAR bans issuers from paying interest on e-money tokens, and stablecoins lack direct central bank access, meaning holders aren't protected by deposit guarantee schemes. MEPs welcome the rise of euro-denominated e-money tokens under MiCAR and want them grow further, to support EU payment innovation, financial market competitiveness, and the euro's international role, including through faster, cheaper cross-border payments. They also call for harmonised liquidity and crisis-management rules. Opportunities and risks MEPs emphasise that DLT and asset tokenisation can support savings and investment union by easing cross-border investment, reducing market fragmentation, and building more efficient, inclusive capital markets, stressing that interoperability is key. They regret however the EU's reliance on non-EU DLT infrastructure providers. MEPs also urge the Commission to keep monitoring how crypto-assets connect to the wider financial system, warning that unbacked crypto-assets carry added risks and volatility. Parliament is concerned about crypto-assets being used to evade anti-money laundering and counter-terrorism financing (AML/CFT) rules and sanctions and calls for stronger supervisory and enforcement tools. MEPs want better data on debt levels in crypto markets, and close monitoring of how the US administration treats digital assets. The texts highlights concerns about the rapid growth and dominance of US dollar stablecoins, which could weaken Europe's control over its own currency, undermine financial stability, make central bank policies less effective, and leave the EU dependent on foreign payment systems. The report also flags the need for legal clarity on whether stablecoins could be jointly issued by an EU and a non-EU entity as fully interchangeable tokens. The European Systemic Risk Board has warned that such multi-issuance could spread financial contagion. Digital euro MEPs welcome ongoing work on the digital euro, covering both retail and wholesale use, and support the short-term ( Pontes ) and long-term ( Appia ) DLT projects for wholesale central bank settlement. They call on the Commission and the European Central Bank to ensure future digital euro solutions work smoothly with DLT infrastructure and complement cash. Quote Johan Van Overtveldt (ECR, BE responsible for the report said: “Europe must embrace the opportunities offered by digital assets, while keeping risks firmly under control”. Contacts: Dorota KOLINSKA Press Officer (PL) Contact data: Phone number: +32 228 32787 (BXL) Mobile number: +32 498 98 32 80 E-mail: dorota.kolinska@europarl.europa.eu E-mail: econ-press@europarl.europa.eu X account: @EP_taxation Bluesky account: @fisc.europarl.europa.eu Further information Committee on Economic and Monetary Affairs Product information Ref.: 20260707IPR46356 Share this page: Facebook X LinkedIn WhatsApp Sign up for mail updates PDF version