ESMA has responded to the European Commission's consultation on the MiCA review, aiming to simplify the framework and boost investor protection. Key recommendations focus on enhancing investor safeguards, especially for crypto-asset marketing, influencer promotions, and cost transparency. Stricter rules for staking, lending, and borrowing are proposed, including clear disclosures on risks and rewards. ESMA also suggests reinforcing supervisory powers to combat online fraud, unauthorised services, and non-compliant stablecoins. This includes blocking fraudulent websites and freezing crypto assets in cases of market abuse or terrorist financing. Additionally, ESMA advocates for clearer criteria for genuinely decentralised activities and a new regulated service for firms accessing DeFi protocols. To streamline the process, it recommends adopting harmonised classification rules for crypto-assets and granting ESMA binding opinion authority. Simplification efforts include streamlining white-paper notification and reducing duplicative authorisation requirements. Looking ahead, ESMA highlights the need for a framework for tokenised securities and on-chain settlement to foster an integrated European tokenised capital market. These measures aim to protect investors, reduce regulatory arbitrage, and support the evolving crypto landscape.