MCA Architect says EU should prioritize tokenization with DeFi rules.

Instead of regulating decentralized finance through the second version of the Crypto-Assets Regulation (MiCA), the European Union should focus on a broader digital asset framework covering real-world assets and tokens, a European Commission adviser has said.

The European Commission launched a public consultation on MiCA in May, seeking comments until August 31.

“I don’t believe it [MiCA] Now it’s time out. This is my personal opinion, but it doesn’t matter. That’s why we have consultations.” Peter Kersten spoke to Cointelegraph at the WAIB Summit Monaco 2026 fire panel.

According to Kirsten, one of the architects of the MCA, the feedback received during the European Commission’s current review will help shape the Union’s next regulatory actions.

The MICA is about to end its transition period on July 1, after which crypto asset service providers will be required to hold a MiCA license or stop serving EU clients.

Related: Crypto companies face EU freeze on July 1 as MiCA grace period expires

EU doesn’t need to regulate DeFi, says MCA architect

Decentralized financial (DeFi) protocols are among the emerging risk areas examined in the consultation, although they are largely outside the scope of MiCA.

Adapted from the public consultation on the MiCA review. Source: European Commission

But Kirsten said regulating DeFi is difficult because rules can be applied to people and organizations, but not directly to computer networks. Legislators need a new legal education to control non-members, he said.

Kerstens added that he doesn’t see the need to regulate Defi, which he describes as “a movement that has no representative.”

“I don’t see what the problem is, and if there is no problem, why is it regulated?”

A working paper from the European Central Bank in early March questioned whether Decentralized Autonomous Organizations (DAOs) are decentralized enough to remain outside the scope of MiCA. Looking at Aave, MakerDAO, Ampleforth and Uniswap, the paper reveals the top 100 governance token holders that control more than 80% of the supply in each protocol, with snapshots from November 2022 and May 2023.

The authors question whether these findings are inherently decentralized and whether DAOs should remain outside of MiCA regulation as “fully decentralized” services.

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