Kulechov Warns EU MiCA Changes Could Restrict Open DeFi Access
Aave founder Stani Kulechov is speaking out against proposed changes to the Markets in Crypto-Assets (MiCA) regulation in Europe. He believes that these changes could restrict access to decentralized finance (DeFi) and stablecoin yields, effectively creating regulated gateways for European users.
Kulechov is concerned about proposals from the European Central Bank (ECB) and European Banking Authority (EBA) that would require suitability tests, leverage limits, additional disclosures, and even certification of DeFi lending protocols. He argues that these measures could fragment liquidity and create a permission-based system for networks designed to be permissionless.
The MiCA review has been ongoing since September 30, with the European Commission considering various proposals. Kulechov's comments reflect the concerns of other major crypto companies, such as Circle and Hyperliquid, which are pushing for changes that would preserve open DeFi access.