EU should prioritize tokenization of real assets, MiCA architect

Peter Kerstens, an adviser to the European Commission and one of the architects of the Markets in Crypto-Assets Regulation (MiCA), told attendees at WAIB Summit Monaco 2026 that the EU should focus on a wider framework for tokenizing real-world assets rather than extending MiCA to decentralized finance (DeFi).

The European Commission launched a public consultation on MiCA in May that runs through Aug. 31. MiCA’s transitional period ends on July 1, after which crypto-asset service providers will need a MiCA licence to operate for EU clients or stop those services.

Kerstens argued that applying rules directly to DeFi protocols presents legal difficulties because laws are written to target people and organisations, not code or distributed computer networks. He said lawmakers would need a new legal doctrine to reach systems without identifiable legal entities.

“I do not believe that [MiCA] is outdated now.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 told attendees. He described DeFi as a movement with “no representatives” and questioned the need for regulation where he saw no clear problem: “I don’t see what the problem is. And if there is no problem, why should it be regulated?” he added.

The consultation lists DeFi among several emerging risk areas but keeps most existing MiCA provisions focused on crypto-asset service providers and issuers. Kerstens said feedback from the consultation will help identify gaps and the new tools the EU may need, including rules for tokenized real-world assets such as property, securities and commodities.

A separate working paper from a central bank examined governance token distributions in four protocols — Aave, MakerDAO, Ampleforth and Uniswap — using snapshots from late 2022 and mid-2023. The paper found the top 100 holders controlled more than 80% of the token supply in each case and said those concentrations raise questions about whether some decentralized autonomous organisations should remain outside MiCA’s scope.

Kerstens acknowledged those governance findings but reiterated that practical and legal limits make direct regulation of code-based systems difficult. He recommended directing regulatory effort toward legal clarity for assets represented on blockchains and rules that support safe tokenization.

The MiCA review will collect industry and public input through Aug. 31, and the commission has said it will use responses to shape any future proposals. The July 1 licence deadline remains in place for crypto-asset service providers serving EU clients.