EBA Asks EU to Study Stablecoin Lending Limits and DeFi Gateway Rules
EBA wants Brussels to study lending curbs for unauthorized stablecoins
The European Banking Authority has suggested blocking EU crypto service providers from arranging or facilitating borrowing and lending that involves stablecoins without authorization under MiCA, the European Union's crypto rulebook. A stablecoin is a crypto token designed to hold a steady value, usually tied to a currency like the euro or dollar.
The suggestion came in the EBA's Sept. 24 response to the European Commission's targeted consultation on its MiCA review. The EBA presented the measure as an option for future legislation, not as a prohibition that is now in force.
What the EBA document proposes
- The EBA called for a cost-benefit analysis of adding intermediated lending and borrowing to the list of regulated crypto services.
- It also wants requirements examined for firms that connect customers to DeFi lending protocols. DeFi, or decentralized finance, refers to lending and trading services that run on blockchain software rather than through a traditional company.
- Other options listed include suitability tests, leverage limits and extra warnings that activity carried out through truly decentralized protocols is not regulated.
- A proposed certification system for DeFi lending protocols would check, at a minimum, how well they withstand cyberattacks.
Why the regulator is raising the issue
The EBA said that lending e-money tokens can produce yield, while issuers and crypto service providers are barred from paying interest on them, which it described as a possible source of regulatory arbitrage. Regulatory arbitrage means firms shifting activity to wherever rules are lighter.
The regulator also warned about highly leveraged activity creating collateral chains and contagion risks, and about inadequate disclosures to customers.
Where MiCA draws the line today
MiCA currently leaves lending and borrowing outside its scope, without overriding applicable national law. It also excludes crypto services provided in a fully decentralized way, with no intermediary involved.
The EBA's approach would place requirements on crypto-asset service providers, known as CASPs, that link clients to DeFi through interfaces or products that give exposure to protocols. The regulator said these interfaces make DeFi easier to reach and blur the line between centralized and decentralized finance.
The intermediary model is not new. The Defiant reported in September 2025 that Tesseract obtained a Finnish MiCA license covering portfolio management, custody and asset transfers for its managed DeFi offering. That license covered the intermediary's services, which shows the difference between regulating a company and regulating the underlying protocol.
What is confirmed
The EBA published its response on Sept. 24 as part of the Commission's MiCA review consultation. The document sets out options for legislative change rather than a new rule.
What is still unclear
The EBA's ideas are options for the Commission to consider. The Commission has not said whether it will adopt any of them, and no legislative proposal has been announced.
What happens next
The Commission's targeted consultation closes Sept. 30. The responses will feed into its MiCA review report, which may come with a legislative proposal if the Commission decides changes are needed.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.