The European Central Bank and European Banking Authority have come under fire from Aave founder Stani Kulechov for their reactions to the MiCA study conducted by the European Commission. In his post from October 2, he highlights two problems, which are stablecoin yield and DeFi access through crypto asset service providers.

While the European System of Central Banks is in favour of extending the current ban on stablecoin remuneration to lending, borrowing, and staking, the EBA has suggested looking into regulations for CASPs that enable access to decentralised lending.

Stani Kulechov Challenges the MiCA Responses

Kulechov expressed disappointment with the viewpoints that the ECB and EBA presented during the MiCA consultation. His criticism focuses on what he perceives to be a more extensive regulatory reach into stablecoin yield products and the ways in which DeFi is accessed by European consumers.

In its September 24 response, the EBA suggests that the European Commission look into regulating the lending of cryptocurrency assets, including circumstances in which CASPs give clients access to decentralised lending protocols.

This is significant since traditional crypto loan companies are not the only ones affected by the idea. The function of regulated intermediaries that link clients with DeFi lending methods is particularly covered.

Disappointed by the European Central Bank’s (ECB) and European Banking Authority’s (EBA) responses to the MiCA consultation.

They are not only advocating for a prohibition on paying yield on stablecoins, but also for restrictions on CASPs providing access to DeFi, including…

— Stani (@StaniKulechov) October 2, 2026

ECB Pushes to Extend the Stablecoin Yield Restriction

Regarding stablecoin compensation, the European System of Central Banks has adopted a distinct approach. In response to the MiCA review, it argues that the ban on CASPs paying remuneration on stablecoins should remain in place and should extend to acts outside the current MiCA perimeter, such as borrowing, lending, and staking cryptocurrency.

The logic is based on the differences between savings products and electronic money. The ESCB believes that the current limit on stablecoin compensation could be compromised by permitting indirect returns through alternative arrangements.

The EBA addressed this matter immediately as well. It chose to maintain the ban on interest and interest-equivalent compensation for both asset-referenced tokens and electronic money tokens in its consultation response.

EBA Outlines Possible Restrictions on DeFi Access

The EBA takes crypto lending a step further by suggesting a cost-benefit study of potential regulatory changes. These include creating specifications for CASPs that provide access to DeFi lending protocols and incorporating intermediated cryptocurrency borrowing and lending into the MiCA service framework.

The EBA lists new transparency requirements, leverage limits, and suitability evaluations among its measures. When a CASP provides clients with access to a decentralised lending protocol, the regulator recommends further cautions regarding the dangers and lack of protections on real decentralised protocols.

Additionally, the EBA raises the risk of making it illegal for CASPs to facilitate lending involving tokens that satisfy the MiCA definition of an electronic money token or asset-referenced token but do not have the necessary authorisation.

DeFi Protocol Certification Enters the MiCA Debate

A possible certification system for DeFi lending protocols is among the most noteworthy suggestions. According to the EBA, an evaluation of a protocol's robustness, including its resistance to cyberattacks, might be part of such a regime.

This is the section that makes a clear connection between the regulator's written response and Kulechov's criticism. He is concerned that letting regulators decide which protocols are appropriate for users in Europe could drive open DeFi toward more constrained ecosystems.

Such a certification mechanism is not established by the EBA document. In addition to the suitability standards, leverage limitations, and other disclosures, it offers certification as one alternative for consideration.

The European Commission is in charge of the more comprehensive MiCA review. The duration for its targeted consultation was extended to September 30, 2026, after it began on May 20, 2026. Rather than being changes to the MiCA itself, the EBA and ESCB answers are inputs into that review.

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