As part of the MiCA review, French authorities presented a joint contribution on 21 October from the Treasury, the AMF, the Bank of France and the ACPR on regulating decentralized finance. Faustine Fleuret, Morpho’s head of public affairs and former chair of Adan, welcomes this approach as a counterweight to the positions of the European Banking Authority and the European Central Bank, while warning that Europe cannot afford to lose its crypto businesses. She argues that whether a protocol falls under MiCA should depend on the actual control exercised over it, rather than formal criteria such as the presence of developers or the concentration of governance tokens. She identifies three main risks: mandatory smart-contract certification, restrictions on access to liquidity and extending the liability of crypto-asset service providers to infrastructure they do not control. In her view, disproportionate regulation could drive companies and talent away from Europe at a time when the continent needs to preserve its competitiveness in decentralized finance.
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