One of the architects behind the European Union's Markets in Crypto-Assets (MiCA) framework told policymakers this week that the bloc should prioritize tokenization over regulating decentralized finance. The official, whose work shaped MiCA's final text, said there's no need to regulate DeFi at this time. The statement lands as the European Commission starts collecting feedback on what comes next for the MiCA regime.
Who said it
The remarks came from a person directly involved in drafting MiCA — not a regulator or an industry lobbyist. That matters because it signals that even the people who built Europe's crypto rulebook think Brussels should step carefully around DeFi. The architect didn't name a specific company or protocol; the message was aimed at the Commission itself.
Why tokenization gets the nod
Tokenization — turning real-world assets like bonds, real estate or art into digital tokens — is the area the architect says deserves more attention. The logic: tokenization is already happening inside regulated markets and doesn't need a whole new set of rules. It fits inside existing financial laws. DeFi, by contrast, is borderless, automated and harder to fit into a jurisdiction-based framework. The architect argued that trying to jam DeFi into a traditional regulatory box right now could backfire.
No hurry on DeFi
The message on DeFi was blunt: don't regulate it yet. That's a notable stance because several EU member states have been pushing for tighter controls on decentralized protocols. The architect said the technology is still evolving and regulators don't know enough to write rules that would stick. Better to watch, learn and let tokenization settle first. The timing is interesting — the Commission is currently gathering views on MiCA's next phase, and this input will likely land in a formal consultation document later this year.
What happens next
The European Commission's feedback period is open now. Market participants, national regulators and trade groups are all expected to weigh in. The architect's comments are unlikely to be the final word, but they give the industry a clear signal: if you want the EU to move fast on something, make it tokenization, not DeFi rules. The consultation's outcome will shape the next bill in Brussels — possibly arriving in 2027.
