What did MiCA architect Peter Kerstens say about regulating DeFi in the EU?

Peter Kerstens said the European Union should focus on tokenisation and real-world asset regulation rather than creating new rules for decentralised finance (DeFi). He argued there is currently no clear problem that requires additional DeFi regulation.

Why does Peter Kerstens believe DeFi may not need new regulation?

Kerstens said DeFi protocols are difficult to regulate because laws are generally designed to apply to people and organisations, not decentralised computer networks. He also questioned whether there is enough evidence of a regulatory problem that needs solving.

What is the European Commission reviewing in its MiCA consultation?

The European Commission is gathering feedback on the future of the Markets in Crypto-Assets Regulation (MiCA) through a consultation running until Aug. 31. The review will help determine whether the EU should expand, revise or maintain its current crypto framework.

What is MiCA and why does it matter for crypto companies?

MiCA is the European Union's comprehensive crypto regulatory framework covering digital asset issuers and service providers. It provides legal certainty for crypto businesses operating across the EU and is considered one of the world's most significant crypto regulations.

What happens when MiCA's transitional period ends on July 1?

After July 1, crypto asset service providers must hold a MiCA licence or stop serving customers in the European Union. This marks the full implementation phase of the regulation across member states.

Why is tokenisation becoming a priority for European regulators?

Tokenisation allows traditional assets such as stocks, bonds, real estate and funds to be represented digitally on blockchain networks. Kerstens suggested the EU should focus on building rules for these emerging markets because they may offer broader economic and financial benefits.

What are real-world assets (RWAs) in crypto?

Real-world assets are traditional financial or physical assets that are tokenised on a blockchain. Examples include government bonds, private credit, real estate and equities that can be traded or managed using blockchain technology.

Image for illustrative purposes only. Not a real photo.

MiCA architect backs tokenisation over DeFi rules

Written by Jon CuthbertPublished Jun 9, 2026, 11:59 PMLast Updated Jun 10, 2026, 12:07 AM

A key architect of the European Union’s Markets in Crypto-Assets Regulation (MiCA) has argued that policymakers should focus on tokenisation and real-world asset frameworks rather than introducing new rules for decentralised finance.

Peter Kerstens, an adviser at the European Commission, said the EU’s ongoing consultation on MiCA should help determine future regulatory priorities as lawmakers assess whether additional legislation is required.

“I don't see what the problem is. And if there is no problem, why should it be regulated?”

Said European Commission adviser, Peter Kerstens.

Kerstens said regulating DeFi would be difficult because laws are designed to apply to individuals and organisations rather than decentralised computer networks that operate without formal legal entities.

The European Commission launched its MiCA consultation in May and is gathering feedback until Aug. 31, while the regulation’s transitional period is due to end on July 1, requiring crypto asset service providers to obtain MiCA licences or stop serving EU clients.

Instead of expanding MiCA to cover decentralised finance, Kerstens suggested the bloc should concentrate on developing a broader framework for tokenised assets and other digital asset innovations.

His comments come as policymakers continue debating the decentralisation of major crypto protocols after a European Central Bank working paper found that the top 100 governance token holders controlled more than 80% of the token supply in projects including Aave, MakerDAO, Ampleforth and Uniswap, raising questions about whether some decentralised autonomous organisations should remain outside MiCA's regulatory scope.

At the time of reporting, Aave price was $61.92.