AFME has published its response to the European Commission's targeted consultation on the review of the Markets in Crypto-Assets Regulation (MiCA).
The response sets out AFME's recommendations on the future regulation of crypto-assets, stablecoins, tokenised deposits, distributed ledger technology (DLT), decentralised finance (DeFi), crypto-asset service providers (CASPs), digital assets and tokenised capital markets in Europe.
AFME supports a proportionate and technology-neutral regulatory framework that promotes innovation, strengthens the competitiveness of EU capital markets and provides greater legal certainty for participants operating in digital asset and tokenised financial markets. Key recommendations include:
Maintaining a clear distinction between financial instruments regulated under MiFID II and crypto-assets regulated under MiCA.
Supporting the growth of stablecoin markets through a more flexible reserve asset framework.
Ensuring tokenised deposits continue to be regulated under existing banking rules.
Improving legal certainty for the issuance, transfer, ownership and use of tokenised assets across the EU.
Promoting internationally interoperable and competitive digital asset markets.