Aave founder Stani Kulechov said he was disappointed by responses from the European Central Bank and the European Banking Authority to the MiCA consultation. According to his post, the regulators not only backed a ban on stablecoin yield payments, but also suggested restricting how crypto-asset service providers, or CASPs, can give users access to DeFi, including yield protocols tied to stablecoins not authorized under MiCA. He said the proposals did not clearly explain how such rules would be enforced.
Kulechov also said the proposals would use so-called appropriateness tests to narrow the group of users allowed to access DeFi, while also considering a certification regime for DeFi lending protocols. In his view, letting regulators decide which protocols are suitable for European users could push DeFi toward more closed ecosystems and weaken the liquidity and network effects of open financial networks. He added that excessive restrictions could raise barriers to innovation and slow the development of open, transparent, and auditable financial infrastructure. Kulechov said stablecoins, DeFi, and tokenized securities can reduce friction in financial services, improve transparency, and expand access to financial opportunities, and called on European regulators to put users and their interests at the center of the framework.
Aave founder Stani Kulechov said on Oct. 2 that he was disappointed by the European Central Bank (ECB) and the European Banking Authority (EBA) responses to the MiCA consultation.
In his post, Kulechov said the institutions not only supported banning yield payments on stablecoins, but also suggested limiting how crypto-asset service providers (CASPs) can offer users access to DeFi. He said that would include yield protocols involving stablecoins that are not authorized under MiCA, while leaving the practical enforcement framework unclear.
Kulechov also said the proposals would restrict the pool of users able to access DeFi through so-called appropriateness tests, and that they are considering a certification system for DeFi lending protocols.
He argued that if regulators are allowed to decide which protocols are suitable for European users, DeFi could end up with more closed ecosystems, weakening the liquidity and network effects of open financial networks.
Kulechov said excessive restrictions could add friction to innovation and slow the development of open, transparent, and auditable financial infrastructure. He added that stablecoins, DeFi, and tokenized securities can reduce friction in financial services, improve transparency, and broaden access to financial opportunities.
He called on European regulators to place users and their interests at the center of the regulatory framework, and ended with the statement: "DeFi will win."
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