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ESMA MiCA review response targets DeFi, influencers and stablecoins

Writer: Shawn Jhanji
Shawn Jhanji
Oct 2
4 min read

Updated: 7 days ago

The ESMA MiCA review response, published on 30 September 2026 by the European Securities and Markets Authority (ESMA), sets out how the EU securities regulator wants the Markets in Crypto-Assets Regulation (MiCA) changed. MiCA is the EU rulebook for crypto-assets and the firms that issue, trade and hold them, and the European Commission is reviewing it.


Illustration of financial regulators meeting in a boardroom with EU flags and a MiCA report
Illustrative image of a policy meeting room.

ESMA submitted its recommendations as a response to the Commission consultation on the MiCA review. They are advice to the Commission, not new law, and the release does not set out next steps.


What the ESMA MiCA review response asks the Commission to change


The first group of proposals is about protecting investors. ESMA wants stricter rules for the marketing of crypto-assets, particularly when they are promoted by influencers and other third parties. It also wants clearer cost disclosure, and proportionate disclosure of risks, rewards, collateral arrangements and potential losses for staking, lending and borrowing, where users earn a return by locking up or lending their crypto-assets.


The second group is about enforcement. ESMA asks for stronger EU powers to detect, block and deactivate fraudulent websites, and to freeze crypto-assets where market abuse or terrorist financing is suspected. It also wants reinforced powers over third-country firms that solicit EU investors without MiCA authorisation, and explicit rules preventing regulated firms from offering non-compliant stablecoin services.


The third group is simplification. ESMA proposes streamlined white-paper notification procedures, fewer duplicated authorisation requirements and more consistent prudential requirements, which govern the financial strength firms must maintain.


DeFi access and token classification under MiCA


ESMA calls for clearer criteria to decide when an activity is genuinely decentralised. DeFi, short for decentralised finance, means financial services run through software protocols rather than by a firm. ESMA also proposes a new regulated crypto-asset service for firms that give users access to DeFi protocols.


On classification, ESMA wants the power to issue binding opinions on how a token should be classified, including hybrid tokens, which combine features of more than one category. The aim is consistent treatment across EU member states.


Tokenised securities and the UK firms serving EU clients


The release also looks beyond MiCA. ESMA says it wants a framework for tokenised securities and on-chain settlement that supports an integrated European tokenised capital market, and presents this as a longer-term aim. It follows ESMA's decision to name tokenisation a supervisory priority from 2027.


For the UK, the clearest link is the third-country point. A UK firm that solicits EU investors without MiCA authorisation is the kind of firm ESMA wants stronger powers over. The UK is building its own regime in parallel: the Financial Conduct Authority (FCA) opened its gateway to regulated crypto on 30 September 2026, and Crowdfund Insider reported on 1 October 2026 that the application deadline is 28 February 2027.


Frequently asked questions


What did ESMA recommend in its response to the MiCA review?

In its response to the European Commission consultation, published on 30 September 2026, ESMA proposed stronger investor protection, stronger enforcement powers and simpler procedures under MiCA. It also called for clearer criteria on decentralised finance and binding ESMA opinions on token classification.

Is the ESMA MiCA review response new law?

No. The recommendations are advice to the European Commission, not new law, and the release does not set out next steps.

What does ESMA want to change about crypto influencer marketing under MiCA?

ESMA wants stricter rules for the marketing of crypto-assets, particularly when they are promoted by influencers and other third parties. It also wants clearer cost disclosure and proportionate disclosure of risks for staking, lending and borrowing.

How does ESMA propose to treat DeFi under MiCA?

ESMA calls for clearer criteria to decide when an activity is genuinely decentralised. It also proposes a new regulated crypto-asset service for firms that give users access to DeFi protocols.

How could the ESMA MiCA proposals affect UK crypto firms?

ESMA wants reinforced powers over third-country firms that solicit EU investors without MiCA authorisation, which includes UK firms doing so. Separately, the FCA opened its gateway to regulated crypto on 30 September 2026, with an application deadline reported as 28 February 2027.


This is general information, not legal, tax or investment advice.


Key takeaways


  • ESMA published its response to the European Commission consultation on the MiCA review on 30 September 2026.

  • It asks for stricter rules on crypto marketing by influencers and fuller disclosure on staking, lending and borrowing.

  • It wants stronger EU powers over fraudulent websites and over third-country firms soliciting EU investors without MiCA authorisation.

  • It proposes clearer criteria for decentralised activity, a new regulated service for DeFi access, and binding ESMA opinions on token classification.

  • It names a framework for tokenised securities and on-chain settlement as a longer-term aim, and the recommendations are advice to the Commission, not law.


Sources


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