The European Union is moving forward with stricter investment guidelines that would give preference to domestic enterprises. This regulatory shift marks a significant move toward protectionist measures in the bloc's capital allocation framework. The proposal would establish new conditions requiring investment decisions to prioritize local companies, fundamentally reshaping how capital flows across EU member states. For the crypto and blockchain sector, this could have meaningful implications—particularly for European Web3 projects seeking funding. The focus on local-first policies might increase funding accessibility for regional startups, though it could also create compliance complexities for cross-border investment activities. Understanding these emerging policy dynamics becomes crucial for anyone tracking the European digital asset landscape.