FameEX Hot Topics | New Regulators Prepare to Shape Europe's Crypto Policies

The European Parliament is preparing to establish a new European Commission, which will set the course for cryptocurrency policy in the European Union (EU) over the next five years. As elections are taking place globally, the EU is no exception. This autumn, the European Parliament will vote on a new commission, which will translate political priorities into draft legislation.

While the new commission won't take office until at least November, making it too soon to gauge its full impact on cryptocurrency policies, a few trends can provide insight into how incoming lawmakers might approach regulation.

The first trend is the shift of Europe’s political center to the right, which could have significant implications for businesses. Debates around taxation and innovation policies are expected to intensify. In particular, France faces challenges due to its political instability, a factor that could create uncertainty for crypto companies operating within its borders. Businesses in the cryptocurrency space should keep a close eye on these developments.

Another trend is the increasing competition among policymakers for influence over innovation policies. During the next commission's term, cryptocurrency policy may be shaped more by individual actors rather than political parties. Some newly elected Members of the European Parliament (MEPs) are likely to make their mark by specializing in crypto policy. Senior policy advisors could also play a crucial role in guiding the direction of digital-asset regulations. Moreover, EU council presidency roles are significant, as countries seek to shape the EU’s crypto regulations. For instance, Denmark, which will hold the presidency in the latter half of 2025, has a proactive regulator that has already made valuable contributions to the field.

A third trend highlights the growing realization that innovation will remain a central focus of EU policy. Key areas like digital privacy and artificial intelligence (AI) have been prioritized, and we can expect assertive implementation of landmark legislation passed in the last term, such as the Digital Market Act and Digital Services Act. These regulations cover digital “gatekeepers” and content moderation on platforms, and they will likely see stronger enforcement.

On the market side, increased institutional adoption of cryptocurrency and distributed ledger technology may prompt political intervention. While it’s unclear what regulatory barriers the EU faces, greater retail investor exposure to crypto via traditional finance could elicit a political response.

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