Aave founder Stani Kulechov has criticized emerging proposals from European regulators that could extend restrictions on stablecoin yield and place new controls around access to decentralized finance (DeFi).
Kulechov expressed disappointment in an online post regarding positions emerging from the European Central Bank and the European Banking Authority (EBA) during the ongoing review of the Markets in Crypto-Assets regulation (MiCA). His concerns center on proposals that could restrict stablecoin yield and impose new requirements when regulated crypto firms connect customers with DeFi applications.
The European Commission's MiCA consultation closed on September 30 and could inform future legislative changes, though the proposals are currently recommendations rather than adopted EU rules. Potential measures under consideration by the EBA include suitability tests, leverage limits, additional disclosures, and the certification of DeFi lending protocols, alongside possible restrictions on lending involving stablecoins lacking required MiCA authorization.
Additionally, the European System of Central Banks has argued that restrictions on stablecoin remuneration should cover indirect returns generated through lending, borrowing, and staking. Kulechov warned that such measures could fragment liquidity and create regulated gateways around networks designed to remain permissionless.
Other industry participants have also voiced concerns and alternative approaches. Morpho Global Head of Policy Affairs Faustine Fleuret stated that the protocol welcomed regulatory obligations focusing on identifiable actors rather than decentralized code, but opposed extending stablecoin remuneration restrictions to DeFi yield, mandatory protocol certification, and separate MiCA services for DeFi access. Meanwhile, Circle has advocated for preserving multi-issuance structures for global stablecoins, and the Hyperliquid Policy Center has argued that perpetual futures should remain governed by existing derivatives rules rather than a new framework.
