EU Schedules Launch of DeFi Regulatory Framework for 2026

2 mins mins

Key Points:

EU plans new DeFi regulatory framework by 2026, addressing decentralization.
Impact on Ethereum-based DeFi protocols anticipated.
New AML rules for privacy coins set for 2027.

Vyara Savova and Marina Markezic of the European Crypto Initiative announced the EU’s plans to launch a decentralized finance (DeFi) regulatory framework in 2026. Current MiCA laws lack clear decentralization definitions.

The upcoming initiative aims to clarify regulatory guidelines for DeFi, potentially impacting major tokens and protocols.

EU’s 2026 Decentralized Finance Framework to Redefine Regulations

Vyara Savova, head of policy at the European Crypto Initiative, announced Europe’s plan to initiate a decentralized finance regulatory framework in 2026. Following the implementation of MiCA in 2024, the current regulatory framework left decentralized protocols undefined, creating uncertainty.

The proposed framework aims to define decentralization, impacting DeFi protocols like Ethereum, Aave, and Uniswap. The development, set to start in mid-2026, is anticipated to clarify regulatory standards for decentralized systems.

“While MiCA theoretically excludes DeFi from its scope, the lack of a clear definition of decentralization has left the sector in regulatory limbo. Starting around mid-2026, authorities in the European Union will begin interpreting how to legally define decentralization, a process that is expected to shape the future regulatory landscape for DeFi.” — Vyara Savova, Senior Policy Lead, European Crypto Initiative.

MiCA’s Impact and Future of Privacy Coin Regulations

Did you know? MiCA’s exclusion of “fully decentralized” protocols without a clear definition reflects challenges similar to those encountered with MiFID in traditional finance, where initial uncertainty gave way to greater institutional participation over time.

On June 6, 2025, Ethereum (ETH) was priced at $2,510.27 with a market cap of $303.04 billion. Within the past 30 days, Ethereum saw a price increase of 38.12%, according to CoinMarketCap data.

ethereum-daily-chart-402 — Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 15:55 UTC on June 6, 2025. *Source: CoinMarketCap*

Experts from Coincu suggest that defining decentralization will likely stabilize regulatory standards, potentially encouraging greater institutional adoption. Additionally, the proposed AML rules, set for 2027, could further shape the privacy coin market.