EU Told to Expand Crypto Lending Rules Under MiCA

The European Banking Authority (EBA) has urged the European Commission to consider bringing crypto lending under the scope of MiCA, the EU's digital asset regulatory framework.

This recommendation includes cases where crypto asset service providers give customers access to decentralized lending protocols, which can pose risks to consumers that are not fully addressed under the existing framework.

The EBA also called for stronger rules covering third-country multi-issuer stablecoin arrangements and reviewed reserve requirements for stablecoin issuers, including rules governing the minimum share of reserves that must be held as bank deposits.

The regulator identified crypto asset classification as a major challenge due to unclear boundaries between MiCA and other EU financial rules, which can create unnecessary costs and delays for companies launching products.