MiCA architect says EU should prioritize tokenization over DeFi rules

European Commission adviser Peter Kerstens suggests that future EU regulatory efforts should prioritize a comprehensive framework for real-world assets and tokenization rather than attempting to regulate decentralized finance under a potential MiCA 2. Kerstens, a key architect of the existing Markets in Crypto-Assets Regulation, argues that applying traditional legal doctrines to decentralized networks is inherently difficult because they lack centralized entities or representatives. This perspective emerges as the European Commission conducts a public consultation on the future of MiCA, which concludes on August 31, 2026. While DeFi remains a point of interest in the consultation, the focus on RWA tokenization signals a strategic shift toward integrating traditional assets into the digital ecosystem. This approach acknowledges the practical challenges of governing autonomous protocols while fostering a clearer legal environment for institutional asset tokenization. As the MiCA transitional period ends on July 1, 2026, the bloc is positioning itself to define the next phase of digital asset oversight. By emphasizing tokenized real-world assets, the EU aims to provide regulatory clarity for the broader digital asset market beyond the current scope of crypto-asset service providers.

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