The European Banking Authority (EBA) today published an Opinion on the amendments proposed by the European Commission (EC) to the EBA draft Regulatory Technical Standards (RTS) on conflicts of interests for issuers of asset-referenced tokens. The EBA agrees with the substantive changes proposed by the EC, which favour proportionality, as well as with the other amendments which are considered non-substantives. The draft RTS specify the requirements for policies and procedures on conflicts of interest for issuers of asset-referenced tokens (ARTs) under the Markets in Crypto-Assets Regulation (MiCAR). They aim at strengthening the management of conflicts of interest by issuers of ARTs and ensure convergence of requirements across the European Union.In developing the draft RTS, the EBA took into account recent reports of governance failures, specifically regarding failures to identify and manage effectively conflicts of interest, within the crypto-asset market globally, and to requirements applicable within the traditional EU financial sector addressed at mitigating conflicts of interest.Legal basis and background This Opinion is based on Article 10(1) of Regulation (EU) No 1093/2010, which requires the EBA to submit its response in the form of an opinion to amendments to draft regulatory technical standards (RTS) proposed by the European Commission. On 5 June 2024, the EBA submitted its final draft RTS to the EC and on 29 November 2024, the EC sent a letter to the EBA about its intention to endorse the RTS with amendments and submitted a modified version of the RTS. The opinion constitutes the EBA’s response to the EC.
Brief
On February 05, 2025, the European Banking Authority (EBA) issued an update regarding The EBA issues an Opinion in response to the European Commission’s proposed amendments to the EBA draft technical standards on conflicts of interests for issuers of asset-referenced tokens. The EBA agrees with the EC's substantive changes and non-substantive amendments, favouring proportionality and strengthening conflict management for issuers of asset-referenced tokens (ARTs).
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Purpose
The European Banking Authority (EBA) has published an Opinion on the amendments proposed by the European Commission to the EBA’s draft Regulatory Technical Standards (RTS) on conflicts of interests for issuers of asset-referenced tokens. The EBA agrees with the substantive changes proposed by the EC, which favor proportionality, as well as with the other amendments considered non-substantive.
The purpose of this Opinion is to provide a formal response from the EBA to the European Commission’s intention to endorse the draft RTS on conflicts of interests for issuers of asset-referenced tokens (ARTs) under the Markets in Crypto-Assets Regulation (MiCAR). The EBA aims to strengthen the management of conflicts of interest by issuers of ARTs and ensure convergence of requirements across the European Union.
Effects on Industry
The publication of this Opinion is expected to have a significant impact on the crypto-asset market globally, particularly on issuers of asset-referenced tokens (ARTs). The EBA’s draft RTS aim to strengthen the management of conflicts of interest by issuers of ARTs and ensure convergence of requirements across the European Union.
The effects on industry are likely to be multifaceted:
- Issuers of ARTs will need to implement policies and procedures on conflicts of interest, as specified in the EBA’s draft RTS.
- The EBA’s emphasis on proportionality is expected to lead to more tailored approaches to managing conflicts of interest, taking into account the specific characteristics of each issuer.
- The convergence of requirements across the European Union is likely to increase transparency and trust within the crypto-asset market.
Relevant Stakeholders
The following stakeholders are affected by this update:
- Issuers of asset-referenced tokens (ARTs)
- Regulators in the European Union
- Investors and consumers in the crypto-asset market
- The European Commission
These stakeholders will need to comply with the EBA’s draft RTS on conflicts of interest for issuers of ARTs, which are expected to be endorsed by the European Commission.
Next Steps
The next steps for relevant stakeholders include:
- Issuers of ARTs: Implement policies and procedures on conflicts of interest, as specified in the EBA’s draft RTS.
- Regulators in the European Union: Ensure compliance with the EBA’s draft RTS on conflicts of interest for issuers of ARTs.
- Investors and consumers in the crypto-asset market: Monitor changes to the regulatory environment and adjust investment strategies accordingly.
The European Commission is expected to endorse the EBA’s draft RTS on conflicts of interest for issuers of ARTs, which will formalize these changes in the regulatory framework.
Any Other Relevant Information
This update provides additional context on the development of the EBA’s draft RTS on conflicts of interest for issuers of asset-referenced tokens (ARTs).
The EBA took into account recent reports of governance failures within the crypto-asset market globally, as well as requirements applicable within the traditional EU financial sector addressed at mitigating conflicts of interest.
The Opinion is based on Article 10(1) of Regulation (EU) No 1093/2010, which requires the EBA to submit its response in the form of an opinion to amendments to draft regulatory technical standards (RTS) proposed by the European Commission.
