The European Union has officially adopted the MiCA legislation 🏳️

Here's how the legislation intends to classify crypto assets:

Asset-referenced tokens (ARTs)
A specific type of crypto-asset designed to uphold a steady value by referencing the worth of multiple fiat currencies recognized as legal tender, one or more commodities, one or more crypto-assets, or a blend of these assets.

Electronic money tokens (EMT)
They maintain a stable value by linking itself to the value of a fiat currency that is defined as legal tender. The contrast between ARTs and EMTs lies in the structure of the underlying asset that serves as the foundation for their value. ARTs rely on non-cash assets or a collection of currencies.

Non ARTs or EMTs
Other tokens that doesn't fit the description of ART or EMT, such as utility tokens are not considered to be financial instruments. It's also worth noting that the MiCA legislation excludes DeFi and NFTs.