The Association for Financial Markets in Europe (AFME), an industry advocacy group that represents wholesale market participants in Europe, called for the inclusion of the decentralized finance (DeFi) sector within the recently passed Markets in Crypto-Assets (MiCA) regulations.

MiCA is considered the first potential piece of comprehensive crypto legislation and is set to go into effect in December 2024. However, the crypto legislation excludes certain aspects of the crypto ecosystem, including DeFi and nonfungible tokens. The AFME, in its paper addressed to the Europen Council, noted that the exclusion of DeFi could create unintended risks to financial stability and potential knock-on impacts: