Peter Kerstens argues EU should focus on tokenization as commission reviews framework
Peter Kerstens, an adviser at the European Commission and architect of MiCA, said he sees no need to regulate decentralized finance as the EU gathers feedback on the framework’s future direction.
The European Commission launched a public consultation on MiCA in May 2026, seeking input through August 31, 2026. The consultation comes as the framework approaches a critical deadline: July 1, 2026, when the transitional period ends and crypto asset service providers must hold a MiCA license or cease EU operations.
Kerstens argued that regulating DeFi would be impractical because laws apply to people and organizations, not directly to computer networks. “I don’t see what the problem is. And if there is no problem, why should it be regulated?” he said. Lawmakers would need a new legal doctrine to regulate non-entities, he added.
Instead, Kerstens said the EU should prioritize a broader digital asset framework covering real-world assets and tokenization. “I do not believe that [MiCA] is outdated now.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 said.
His position contrasts with scrutiny from the European Central Bank. In March 2026, the ECB published a working paper examining whether decentralized autonomous organizations (DAOs) are sufficiently decentralized to remain outside MiCA’s scope.
The ECB analyzed four protocols: Aave, MakerDAO, Ampleforth, and Uniswap. Based on governance token holdings snapshots from November 2022 and May 2023, the paper found that the top 100 token holders controlled over 80% of supply in each protocol. That concentration raises questions about whether these systems meet decentralization standards that would exempt them from regulation.
The tension between Kerstens’ regulatory minimalism and the ECB’s decentralization analysis reflects broader uncertainty about MiCA’s scope as the framework matures. The consultation period will determine whether the European Commission pursues DeFi-specific rules, expands existing provisions, or maintains the current approach.
