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The Architect Behind Europe's Crypto Rules Says the EU Should Focus on Tokenization — Not DeFi Crackdowns. Here's Why That Matters

64d ago · 1 source

The key figure behind the EU's landmark MiCA (Markets in Crypto-Assets) regulation is urging European policymakers to prioritize building a framework for tokenization of real-world assets rather than rushing to regulate decentralized finance (DeFi). The comments suggest a strategic shift in how Europe may approach the next phase of crypto regulation, potentially dubbed 'MiCA 2.' This could have significant implications for how DeFi protocols and tokenized assets are treated across the bloc.

WHY IT MATTERS

Think of MiCA as Europe's rulebook for crypto — it's the most detailed set of crypto laws anywhere in the world. Now, the person who helped write that rulebook is saying the EU's next move should be to create rules for 'tokenization' — which is basically turning real-world things like property, stocks, or bonds into digital tokens on a blockchain, making them easier to trade and access. At the same time, they're saying Europe shouldn't rush to regulate DeFi, which stands for 'decentralized finance' — apps that let people lend, borrow, and trade crypto without banks or middlemen. This matters because it could shape what kinds of crypto projects thrive in Europe and influence how other countries write their own rules.

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