Aave founder Stani Kulechov expressed disappointment with the European Central Bank and European Banking Authority's MiCA consultation responses, criticizing proposed appropriateness tests and certification requirements for DeFi protocols as potentially creating a 'walled garden' that limits access to open financial networks.
Circle submitted feedback to the European Commission's MiCA review, noting that while MiCA has given Europe a regulatory advantage with 30 authorized e-money tokens, only 3 of the world's top 25 stablecoins are regulated under it. Circle recommends retaining multi-issuer structures, establishing equivalence frameworks for foreign stablecoins, and revising reserve requirements that it argues increase banking risks.
The European Securities and Markets Authority proposed expanding MiCA regulations to include DeFi entry points, staking, and crypto lending services, while also strengthening measures against unauthorized stablecoins. These proposals remain under discussion and could significantly impact EU crypto service providers' business models and compliance obligations.