The European Union has signed its Markets in Crypto Assets (MiCA) policy package into law, but a study commissioned by the European Parliament has highlighted gaps in the regulation. The study, written by four law and finance professors, notes that MiCA does not adequately consider the nuances between different types of decentralised finance protocols and their levels of decentralisation. It also suggests that the EU should consider the US's Howey Test when classifying tokens, particularly in relation to lending and staking protocols. Despite these concerns, some industry members and lawmakers have praised MiCA as a step forward for Europe.