MiCA Architect Urges EU to Focus on Tokenisation Before DeFi Regulation

Peter Kerstens, a European Union (EU) advisor to the European Commission, says the organisation should focus on developing a broader policy framework for digital assets in relation to physical assets and tokenisation, rather than creating a second Markets in Crypto-Assets Regulation (MiCA) for decentralised finance (DeFi), said a report by Cointelegraph. Kerstens added that the feedback that the regulator received during the European Commission's current review period will assist in shaping the bloc's upcoming regulatory action. Meanwhile, MiCA is approaching its transitional period's deadline, which is on July 1, after which all crypto service providers without the MiCA license would have to halt services in the EU.

Kerstens Says DeFi Requires an Entirely New Regulatory Approach

Even though DeFi protocols are considered one of the emerging risk areas as per the consultation paper's examination, the protocols are largely outside MiCA's current scope. But according to Kerstens, DeFi regulation is challenging since laws cannot apply directly to computer networks but only to people and entities. Therefore, according to him, lawmakers will have to develop an entirely new theory to regulate DeFi.

As per the report by Cointelegraph, Kerstens also stated that “I do not believe that [MiCA] is outdated now. That's my personal opinion, but it does not matter. That's why we have this consultation.” He further added that he doesn't see a need to regulate DeFi, which he described as a “movement” that has “no representatives.” 

Tokenisation of RWA definitely grabs attention from such regulators, since the data by DeFiLlama backs it up. The data states that tokenised RWAs have increased by roughly 66 percent since the beginning of 2026. The significant rise indicates a desire to add conventional financial assets to blockchain networks, including bonds, credit, and commodities. As institutions and investors investigate blockchain-based financial products that connect traditional assets with digital finance systems, RWAs have emerged as one of the fastest-growing segments.

The observations made by Kerstens reflect the current debate going on within the EU on the need to further develop regulations surrounding digital asset regulations beyond the MiCA framework. While questions around DeFi oversight remain unresolved, the emergence of tokenised assets has gained significant importance.