Jonathan Galea (@ImpermanentGain), counsel at Cahill, Gordon, & Reindel LLP, joins Connor Spelliscy (@c_spelliscy) to break down the evolving definition of decentralization under MiCA and the broader EU regulatory framework.

They explore what “sufficient decentralization” means in Europe, how regulators like ESMA and national authorities like Denmark’s FSA are approaching DeFi, and what U.S. policymakers can learn from the EU's years-long legislative process.

Timestamps:

00:00 - Intro

01:03 - Why MiCA mentions decentralization but doesn’t define it clearly

04:58 - ESMA’s closest attempt: the “permissionless” standard

06:31 - Critique of Denmark’s decentralization paper

08:10 - The importance of the definition of a CASP (crypto asset service provider)

13:30 - Will DeFi see real exemptions under MiCA?

14:58 - The EU's risk-based, “light touch” DeFi approach

17:08 - How European regulators compare to the SEC on decentralization

22:30 - Why the term “decentralization” may be overrated

25:45 - A practical approach for lawmakers: reverse-engineer from DeFi best practices

& much more.

Decentralization under MiCA, with Jonathan Galea