MiCA architect says EU should prioritize tokenization over DeFi rules

Crypto Insight Summary: Peter Kerstens, one of the architects of the EU's Markets in Crypto-Assets Regulation (MiCA) and an adviser at the European Commission, said the bloc should focus on developing a broader digital asset framework covering real-world asset tokenization rather than regulating decentralized finance through a second version of MiCA. Speaking at WAIB Summit Monaco 2026, Kerstens stated he does not believe MiCA is outdated and that laws cannot be directly applied to computer networks, meaning regulators would need an entirely new legal doctrine to oversee DeFi protocols. He argued that since DeFi is a "movement" with "no representatives" and no clear problem exists, there is no need to regulate it. The European Commission launched a public consultation on MiCA in May, accepting feedback through Aug. 31, with DeFi protocols listed among the emerging risk areas under examination. The MiCA transitional period ends July 1, after which crypto asset service providers must hold a MiCA license or stop serving EU clients. A March European Central Bank working paper examined Aave, MakerDAO, Ampleforth, and Uniswap, finding that the top 100 governance token holders controlled over 80% of supply in each protocol, raising questions about whether DAOs are truly decentralized and should remain outside MiCA's scope. Crypto Insight Analysis: Direction: Neutral Impact: Minor Impact Horizon: Mid-term (1-8 weeks) Reasoning: MiCA's focus on tokenization rather than DeFi suggests a balanced regulatory approach, avoiding immediate market disruption.