Key Takeaways:
The European Union should focus on a broader digital asset framework covering tokenized real-world assets rather than regulating decentralized finance through a second version of MiCA, one of the regulation's architects said at a conference in Monaco.
"I don't see what the problem is. And if there is no problem, why should it be regulated?" Peter Kerstens, an adviser at the European Commission who helped design the Markets in Crypto-Assets Regulation, said during a fireside chat at WAIB Summit Monaco 2026. Kerstens said regulating DeFi is difficult because laws apply to people and organizations, not directly to computer networks, and lawmakers would need a new legal doctrine to regulate non-entities.
The European Commission launched a public consultation on MiCA in May, seeking feedback through Aug. 31 on emerging risk areas including DeFi protocols, which are largely outside the framework's current scope. MiCA's transitional period ends July 1, after which crypto asset service providers must hold a MiCA license or stop servicing EU clients. An impact assessment by the commission estimated each crypto white paper could cost issuers between $4,500 and $87,000, depending on complexity and legal advice required.
The debate over DeFi regulation comes as a March working paper from the European Central Bank questioned whether decentralized autonomous organizations are decentralized enough to remain outside MiCA's scope. Examining Aave, MakerDAO, Ampleforth and Uniswap, the paper found that the top 100 governance token holders controlled over 80% of the supply in each protocol, based on holdings snapshots from November 2022 and May 2023. The authors said these findings challenge whether DAOs qualify as "fully decentralized" services exempt from MiCA.
Kerstens said he does not believe MiCA is outdated, adding that feedback from the current consultation will shape the bloc's next regulatory steps. He argued the EU should instead prioritize a framework covering real-world asset tokenization, a market that traditional finance institutions are rapidly entering. Ledger Chief Technology Officer Charles Guillemet separately warned that MiCA's compliance costs — ranging from 50,000 euros for advisory services to 150,000 euros to operate a trading platform — are pricing out smaller crypto startups while favoring large, well-funded financial institutions.
The divergence between EU and US regulatory approaches is widening. While Brussels considers whether to regulate DeFi at all, the US Securities and Exchange Commission has pursued enforcement actions against multiple DeFi protocols under existing securities laws. The EU's July 1 MiCA deadline creates a near-term catalyst for compliance-focused crypto firms operating in Europe, even as the bloc's regulators signal that the next phase of digital asset policy may look very different from the first.
This article is for informational purposes only and does not constitute investment advice.
