EU Crypto Regulation Shifts Focus Towards Tokenization

The European Union's regulatory approach to cryptocurrencies is undergoing a significant shift. In response to rapid innovation in the sector, the European Commission's MiCA review is being reoriented towards a broader digital asset framework.

According to Peter Kerstens, a MiCA architect at the European Commission, the current consultation process aims to gather feedback on the future direction of EU crypto regulation. Kerstens emphasized that the input gathered during the consultation will help shape the bloc's next regulatory steps.

The public consultation, which runs until August 31, includes a range of emerging risk areas, including DeFi. However, Kerstens argued that regulating decentralized networks presents fundamental challenges because laws target entities, not networks.