Thread by @RebeccaRettig1

1/ Brief overview of the EU's #MiCA reg that passed Thurs evening. Applaud the effort to provide #clarity in the #crypto space - something we have been requesting for years. But more work to be done. Luckily, there is time to implement the technical text. europarl.europa.eu/news/en/press-…

2/ But first, note that both the Council & Parliament press releases contain quotes that call crypto the "Wild West" (🤦‍♀️). Puts you on notice about whether these standards actually allow for continued innovation. (Parliament ☝️ & Council 👇) consilium.europa.eu/en/press/press…

3/ Before I dive in, note that the EU's drive to create crypto regulation was borne out of the #Libra idea, which caused consternation (panic??) across the globe. Much of #MiCA seems somewhat set in that time period-e.g., 2017 called & it wants its "whitepapers" back.

4/ Now for the substance of the of what has been agreed upon (as far as we know). #DeFi is (supposed to be) excluded. Instead, there will be a study & a report in the coming months. We already know that the EU is keen to issue "MiCA 2.0" to regulate DeFi:

https://twitter.com/RebeccaRettig1/status/1539354270306291724?s=20&t=bQFSZri4-tYsXdRMIHHxRQ

5/ This means that we all must be working tirelessly (literally) to ensure that policymakers understand the tech & that it must be regulated differently than for centralized crypto actors. Be thoughtful & be proactive. #DevsDoSomething. We need your ideas here too!

6/ Below is a list of some of the key "agreements" that allowed #MiCA to pass on the last day it could under the French presidency.

7/ #NFTs are excluded, except those that function or have use cases that make them a financial instrument or a crypto asset.

8/ Requirement for #environmental #safeguards. These are essentially disclosure requirements (at this time) for issuers & other crypto asset service providers (CASPs), but will likely mature into set guidelines over time.

9/ The EU will est a list of "non-compliant" CASPs - crypto companies who are on the list of non-EU countries considered high risk for money laundering or non-cooperative on tax payments.

10/ More to come, but for now, know that our work is not done in the EU or anywhere else in ensuring crypto regs that allows for evergreen (growing 🌿with the tech!), responsible innovation.

11/ The @AaveAave Cos. worked & met w Council members to critical points in #MiCA including DeFi, stable coins and the #TFR self-custodial wallet issue (thresholds for wallet checks, using crypto native compliance solutions like blockchain analytics) leading up to today's vote.

12/ As the EU delves into #DeFi we will collaborate with policymakers to ensure there is a safe & robust system for users while making space for continued innovation in the #web3 world.