Digital finance stands at the crossroads of technology and banking, requiring regulation that reflects the idiosyncrasies of both in an ecosystem approach. However, relevant proposals often address only part of the ecosystem and the actors involved. Europe’s banking sector underpins growth, resilience, and sovereignty, but regulation not fitfor- purpose risks undermining these goals. This article calls for harmonisation, simplification and a rethinking of supervision across the digital finance value chain, supported by continuous dialogue to ensure a European framework that enables innovation, competitiveness and strategic autonomy.
