MiCA Review Sparks Fears Over DeFi Access Restrictions in Europe
Aave founder Stani Kulechov is warning that Europe's MiCA review could limit access to DeFi, citing proposals from the European Central Bank and European Banking Authority. The proposals aim to restrict stablecoin yield and impose new requirements on regulated crypto firms that connect customers with DeFi. This could lead to a fragmented liquidity market and create regulated gateways around decentralized networks, according to Kulechov. The European Commission's MiCA consultation closed on September 30, and the proposals remain recommendations rather than adopted EU rules. However, if implemented, they could push European users toward approved access points rather than open DeFi.
Morpho, a global policy affairs head, has expressed similar concerns, welcoming the principle that regulatory obligations should focus on identifiable actors and access points rather than decentralized code itself. However, it opposes extending stablecoin remuneration restrictions to DeFi yield, mandatory protocol certification, and the creation of a separate MiCA service for DeFi access. Other major crypto companies, including Circle and Hyperliquid, are also pressing for changes, such as preserving multi-issuance structures for global stablecoins and reconsidering rigid bank-deposit requirements for reserves.
Kulechov's verdict on the outcome is straightforward: 'DeFi will win.'