ESMA asks for tighter crypto marketing rules and new DeFi service in MiCA review

The European Securities and Markets Authority published its response to the European Commission’s consultation on reviewing the Markets in Crypto-Assets Regulation (MiCA) on 30 September 2026. It recommends new investor safeguards, stronger supervisory powers and rules for decentralised finance.

Investor protection

ESMA says some investor risks are not fully covered by the current framework. It proposes stricter rules on marketing crypto-assets, particularly when they are promoted by influencers and other third parties, greater transparency on costs, and proportionate requirements, including disclosure, for staking, lending and borrowing. The aim is for investors to see costs, risks, rewards, collateral arrangements and potential losses before they decide.

Supervision and stablecoins

ESMA wants the EU to be better able to detect, block and take down fraudulent websites, and to freeze crypto-assets where market abuse or terrorist financing is suspected. It is asking for stronger powers over firms outside the EU that solicit EU investors without MiCA authorisation, and for explicit rules stopping regulated crypto firms from offering services linked to stablecoins that do not meet MiCA requirements.

DeFi and token classification

ESMA calls for clearer criteria on which activities count as genuinely decentralised, and for a new regulated crypto-asset service for firms that give users access to DeFi protocols. It also suggests rules on how crypto-assets, including hybrid tokens, should be classified, with ESMA able to issue binding opinions on classification so the same product is treated the same way across the EU.

Lighter in places

In line with the EU’s simplification agenda, ESMA proposes simpler white-paper notification procedures, fewer duplicated authorisation requirements for some regulated firms and more consistent prudential requirements. Looking beyond MiCA, it says the EU needs a framework for tokenised securities and on-chain settlement.

What it means for traders

These are recommendations to the Commission, not new rules. If adopted, they would mainly affect how crypto platforms and promoters market to EU clients, what they must disclose on staking and lending products, and how quickly regulators can act against unauthorised offshore firms.

What happens next

ESMA’s paper is one input to the Commission’s review of MiCA. The release does not give a timetable for any legislative proposal.