Aave founder Stani Kulechov said in a post on X that he was disappointed by the response from the European Central Bank (ECB) and the European Banking Authority (EBA) to the MiCA consultation. According to Kulechov, the two institutions not only backed a ban on yield-bearing stablecoin payments, but also proposed limits on how crypto-asset service providers, or CASPs, can offer users access to DeFi. He said the scope of those ideas includes services tied to yield protocols involving stablecoins that are not authorized under MiCA. Kulechov also said the feedback touched on restricting DeFi services to certain user groups through “appropriateness tests” and potentially creating a certification regime for DeFi lending protocols. In his view, letting regulators decide which protocols are suitable for European users could lead to more closed ecosystems, weaken the liquidity and network effects of open DeFi, and reduce opportunities for users in Europe to take part in on-chain finance.
According to ChainCatcher, Aave founder Stani Kulechov said in a post on X that he was disappointed by the response from the European Central Bank (ECB) and the European Banking Authority (EBA) to the MiCA consultation.
Kulechov said the two institutions not only supported banning yield-bearing stablecoin payments, but also proposed restricting crypto-asset service providers (CASPs) from offering users access to DeFi. He said that would include services involving yield protocols tied to stablecoins that are not authorized under MiCA.
Concerns center on access to DeFi services
He also said the feedback covered the use of “appropriateness tests” to limit DeFi services to specific groups of users, and could lead to a certification framework for DeFi lending protocols.
Kulechov said that if regulators are allowed to decide which protocols are suitable for European users, the result could be more closed ecosystems, weaker liquidity and network effects for open DeFi, and fewer opportunities for users in Europe to participate in on-chain finance.
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