EU Should Focus on Tokenization, Not DeFi, Says MiCA Architect
Rebeca Moen Jun 09, 2026 12:49
European Commission adviser Peter Kerstens believes tokenization and real-world asset markets should take precedence over DeFi regulation in future EU priorities.
The European Union should prioritize building a regulatory framework for tokenized assets and real-world asset (RWA) markets over attempting to regulate decentralized finance (DeFi), according to Peter Kerstens, a European Commission adviser and one of the architects of the Markets in Crypto-Assets Regulation (MiCA).
Speaking at the WAIB Summit in Monaco, Kerstens emphasized that tokenization represents a more significant opportunity for the EU than creating a MiCA 2 focused on DeFi. "I don’t see what the problem is [with DeFi]. And if there is no problem, why should it be regulated?" Kerstens remarked. He also noted that regulating DeFi would require entirely new legal doctrines, as it operates through decentralized networks rather than traditional entities.
Why Tokenization Matters
Tokenization involves converting ownership of real-world assets—such as real estate, private equity, or funds—into blockchain-based tokens. These tokens enable fractional ownership, faster settlement, and expanded global access, while embedding compliance and transfer rules directly into smart contracts. As of May 2026, approximately $33.85 billion in tokenized value exists on-chain, with the broader market representing $340.1 billion across asset categories. Analysts project rapid growth, with the global tokenization market potentially reaching $24.48 trillion by 2033, according to Grand View Research.
The EU’s interest in tokenization aligns with rising institutional activity. On June 7, Goldman Sachs-linked infrastructure and DTCC’s upcoming tokenization services highlighted the sector’s momentum. Earlier this year, Bitwise announced plans to enter the market by managing a $267 million tokenized fund. Such developments suggest tokenization could transform asset markets, offering increased transparency and liquidity.
MiCA’s Transitional Period Nears End
MiCA, which provides a unified regulatory framework for crypto assets across the EU, is approaching the end of its transition period. Starting July 1, crypto asset service providers must either secure a MiCA license or cease operations within the bloc. The European Commission is currently reviewing MiCA’s effectiveness through a public consultation open until August 31, 2026. The consultation includes DeFi, though Kerstens downplayed the urgency of regulating the sector.
Not everyone agrees with Kerstens’ perspective. A March 2026 report from the European Central Bank questioned whether decentralized autonomous organizations (DAOs) like MakerDAO and Uniswap are sufficiently decentralized to remain outside MiCA’s regulatory scope. Researchers found that over 80% of governance tokens in major protocols were concentrated among the top 100 holders, raising concerns about their true decentralization.
Looking Ahead
As the EU weighs its next steps, Kerstens’ comments suggest the bloc may prioritize tokenization, a sector with clear growth potential and institutional interest. However, the debate over whether and how to regulate DeFi remains unresolved. The outcome of the MiCA consultation, combined with broader industry trends, will likely shape the EU’s digital asset strategy into 2027 and beyond.
For investors, the focus on tokenization signals a significant opportunity, particularly as institutional players like Goldman Sachs and BlackRock double down on the space. With forecasts projecting exponential growth, tokenization could redefine how assets are issued, traded, and settled globally.
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