FameEX Hot Topics | New Regulators Set to Shape Europe's Crypto Policy Framework

The European Parliament is gearing up to form a new European Commission, which will steer cryptocurrency policy in the European Union (EU) for the next five years. With elections happening worldwide, the EU is no exception. This autumn, the European Parliament will vote on a new commission, which will turn political priorities into draft legislation.

Although the new commission won’t take office until November at the earliest, making it difficult to predict its full impact on cryptocurrency policies, several trends offer clues to how incoming lawmakers might approach regulation.

One notable trend is Europe’s political shift to the right, which could have major consequences for businesses. Debates on taxation and innovation policies are likely to intensify. France, in particular, faces political instability, which could create uncertainties for cryptocurrency companies operating within the country. Businesses in the crypto space will need to monitor these developments closely, as they could shape future regulations and opportunities.

A second trend involves growing competition among policymakers to influence innovation policies. During the new commission’s term, cryptocurrency policy is expected to be driven more by individual actors rather than political parties. Newly elected Members of the European Parliament (MEPs) may focus on crypto regulation to build their reputations. Senior policy advisors are also expected to play a pivotal role in shaping digital-asset regulations. EU council presidency roles are critical as well, with countries like Denmark, set to hold the presidency in 2025, expected to push forward their regulatory priorities. Denmark has already made notable contributions with its proactive approach to cryptocurrency regulation.

The third trend reflects the increasing importance of innovation in EU policy. Key areas such as digital privacy and artificial intelligence (AI) have already been prioritized. Assertive enforcement of legislation passed in the last term, such as the Digital Market Act and Digital Services Act, is expected. These laws address digital “gatekeepers” and content moderation on online platforms, and they are likely to face stronger enforcement in the coming years.

On the market side, the rise in institutional adoption of cryptocurrencies and distributed ledger technology may trigger political action. As retail investors gain more exposure to crypto through traditional finance, it could lead to a regulatory response, though the specific barriers within the EU remain unclear.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.