The European Commission’s consultation on the future of the EU’s crypto rulebook closed on September 30, and the European Banking Authority (EBA) has made one of the clearest cases for widening it.
In its response, published on September 24, EBA urged for broader MiCA rules across the Union, for set rules for firms that give customers access to decentralized finance (DeFi) protocols, for a tightening of oversight of certain stablecoins, as well as for the clarification on how crypto-assets are classified.
EBA argues that new products and business models have created regulatory gaps since the framework entered full application, and believes additional rules could improve customer protection and strengthen supervision across the EU market.
The recommendations do not change MiCA’s current requirements, though they will shape the Commission’s decision on whether to rewrite the regulation.
Crypto lending and DeFi access: Top priorities
EBA recommended adding crypto borrowing and lending activities to MiCA’s regulated services, including cases where crypto-asset service providers connect users with decentralized lending protocols.
The authority also asked the Commission to run a cost-benefit analysis before amending the regulation, and identified several possible requirements for these activities: suitability checks, leverage limits, and stronger risk disclosures for users.
Furthermore, EBA suggested a certification system for decentralized lending protocols, so that regulated firms would only connect customers to protocols meeting set standards.
Per their statement, crypto lending activity already exists across multiple EU countries, with earlier research by European regulators finding intermediated crypto lending services operating in at least 16 member states.
Because regulated platforms can act as a bridge to decentralized protocols, the EBA wants specific requirements from the crypto firms that provide that access.
The regulator also highlighted concerns around stablecoin lending products, saying lending activities involving asset-referenced tokens (ARTs) and electronic money tokens (EMTs) could require additional restrictions under MiCA.
Stablecoin reserves and classification rules also under review
EBA said existing requirements for ART and EMT issuers remain broadly appropriate, although it recommended changes for third-country multi-issuer stablecoin schemes, which it said pose “significant to very significant” risks.
The authority also proposed reviewing reserve rules for token issuers, notably the minimum share of reserves that must be held as bank deposits, putting it on the same track as the EU’s central banks – though more cautiously.
On September 22, the European Central Bank and the 27 national central banks asked the Commission to scrap the deposit requirement altogether. MiCA currently requires at least 30% of reserves to sit in bank deposits, rising to 60% for significant tokens.
The central banks want issuers instead to hold a minimum share of reserves in assets that mature within one to five working days, also flagging crypto-asset classification as a challenge for companies and supervisors. It says unclear definitions cause avoidable costs and delays in product launches and undermine the competitiveness of the EU market.
ESMA adds enforcement demands on the final day
ESMA, the EU’s markets regulator, filed its own response on September 30, the final day of the consultation.
The regulator echoed EBA on DeFi, proposing a new regulated service for firms that give users access to DeFi protocols and clearer criteria for what counts as genuinely decentralized, while also asking for powers to freeze crypto-assets and shut down fraudulent websites, binding authority over token classification, and explicit rules barring regulated firms from offering services linked to non-compliant stablecoins.
Under MiCA as it stands, crypto-asset service providers are licensed and supervised by national authorities, while ESMA mainly works to keep their approaches consistent. When a national regulator is unsure how to classify a token, it can ask ESMA for an opinion, but that opinion is not binding, and ESMA has issued only one so far.
Services provided in a fully decentralized manner, with no intermediary, fall outside the regulation altogether with ESMA stating MiCA gives investors a solid baseline of protection, though it remains less comprehensive than the rules covering traditional financial instruments.
What’s next for MiCA
The responses will now feed into the Commission’s assessment, which it is due to report before the European Parliament and Council by June 30, 2027, and may attach a legislative proposal that the market has already dubbed “MiCA 2.”
The review comes less than two years after MiCA took full effect: the regulation, which set rules for crypto issuers and crypto-asset service providers across the EU, began applying fully on December 30, 2024, after its stablecoin provisions started on June 30, 2024.
Transitional arrangements for existing providers ran out in mid-2026. Since then, regulators have turned to areas the original framework barely touched, including lending, borrowing, staking, and DeFi.
However, the stablecoin market under MiCA also remains small. As of September 1, 2026, 39 EMTs had been issued under the regulation and no ARTs had been authorized, according to EBA.
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