The European Banking Authority (EBA) on Tuesday unveiled a draft set of rules that would extend the EU’s Markets in Crypto‑Assets (MiCA) framework to cover crypto‑lending activities and firms that provide access to decentralized finance (DeFi) protocols. The move, announced as part of the European Commission’s ongoing MiCA review, is intended to close a regulatory gap that currently leaves crypto‑lending largely ungoverned while the broader market expands.
Scope of the proposed regulations
According to Cointelegraph, the EBA’s blueprint would impose licensing, capital‑adequacy and consumer‑protection requirements on entities that offer crypto‑based loans, whether to retail users or institutional clients. The draft also targets “gateways” that connect traditional finance participants to DeFi platforms, demanding transparency on risk‑management practices and anti‑money‑laundering controls.
Altcoin Buzz reported that the EBA intends to replace the existing stablecoin deposit floor – a minimum reserve requirement for stablecoin issuers – with a more flexible mechanism designed to align with the broader banking sector’s liquidity standards. The revision aims to mitigate systemic risk while preserving the utility of stablecoins for cross‑border payments and settlement.
Banking fragmentation and EU funding goals
Traders Union highlighted that the EBA’s proposal is also motivated by what it describes as “banking fragmentation” across the bloc, which it says limits lenders’ ability to channel credit toward EU strategic priorities such as green transition and digital infrastructure. The watchdog warns that without harmonised rules, capital may remain siloed in national markets, undermining the EU’s fiscal objectives.
"Fragmentation in the EU banking sector is limiting lenders' ability to fund the bloc's priorities," the EBA warned, according to Traders Union.
The crypto‑lending market, estimated by industry analysts to be worth several tens of billions of dollars globally, has attracted both crypto‑native participants and traditional financial institutions seeking higher yields. By integrating these activities into MiCA, regulators hope to provide a level playing field, protect investors, and reduce the regulatory arbitrage that has emerged between jurisdictions.
Stakeholders have mixed reactions. Crypto firms argue that overly stringent capital buffers could stifle innovation, while consumer‑advocacy groups welcome the prospect of clearer disclosures and safeguards against default risk. The EBA estimates that compliance costs will vary by size of the lender, with smaller operators facing proportionally higher administrative burdens.
The draft will now undergo a formal consultation period with industry participants, national regulators and consumer groups before the European Commission decides on adoption. If approved, the rules could come into force as early as 2025, aligning the EU’s crypto‑lending landscape with its broader ambition to become a global hub for responsible digital finance.
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Live data: CoinGecko — 2026-09-24 11:20 UTC
