MiCA architect says EU should prioritize tokenization over DeFi rules

Peter Kerstens, a primary architect of the European Union's Markets in Crypto-Assets Regulation (MiCA), has advised that the bloc should prioritize a comprehensive framework for real-world asset (RWA) tokenization over attempts to regulate decentralized finance (DeFi). As the MiCA transitional period concludes on July 1, 2026, the European Commission is currently conducting a public consultation through August 31 to shape future regulatory steps. Kerstens argues that applying traditional legal frameworks to DeFi is inherently difficult because laws target organizations and individuals rather than autonomous computer networks. While the European Central Bank has questioned the true decentralization of protocols like Aave, MakerDAO, Ampleforth, and Uniswap, Kerstens suggests that DeFi functions more as a movement without clear representatives. By shifting focus toward tokenization, the EU could provide clearer legal certainty for institutional adoption of blockchain-based assets. This strategic pivot highlights a growing regulatory preference for governing tangible, entity-backed assets rather than attempting to enforce compliance on decentralized code. Consequently, the RWA sector may see more tailored legislative support, while DeFi remains in a state of regulatory ambiguity.

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