The European Banking Authority recommends bringing crypto lending and some DeFi access services under EU oversight.

The European Banking Authority (EBA) has recommended that the EU strengthen its Markets in Crypto-Assets (MiCA) framework, according to Wu Blockchain. The proposals target third-country multi-issuer stablecoins, clearer crypto asset classification and crypto lending, including certain DeFi lending services.

This recommendation reflects a broader regulatory concern that fast-growing crypto markets may have outpaced some parts of the original rulebook. MiCA is generally understood as the EU’s market-level framework for crypto-asset services and tokens, while the EBA is associated with supporting supervisory consistency across the financial system. In that context, the proposals can be read as an attempt to close gaps where token products, lending models, and cross-border issuers create supervisory uncertainty.

Stablecoin and reserve risk

The EBA said the current asset-referenced token (ART) and e-money token (EMT) framework needs review, particularly reserve asset requirements, because multi-issuer stablecoins may pose higher risks. It called for greater focus on third-country multi-issuer stablecoins.

ARTs and EMTs are token categories associated with different forms of value representation: an EMT is commonly linked to a single official currency, while an ART may reference a basket of assets or other value units. Multi-issuer structures can make reserve management more complex because the same or similar token may be issued by more than one entity, potentially raising questions about redemption consistency, reserve segregation, governance accountability, and which supervisor has primary oversight. The focus on third-country issuers also reflects the cross-border nature of stablecoin markets: users in the EU may hold tokens issued outside the EU, where reserve controls, disclosure standards, and enforcement arrangements may differ.

Scope and lending services

It also recommended clearer boundaries for which crypto assets fall within MiCA and that crypto service providers facilitating access to DeFi lending protocols be brought into crypto lending oversight.

The distinction between centralized crypto lending and decentralized finance is important. Traditional crypto lending services usually involve intermediaries that take deposits, lend assets, and manage counterparty risk. DeFi lending protocols can operate through smart contracts and liquidity pools, but service providers that help users access these protocols may still perform functions similar to intermediaries, such as interface provision, risk screening, education, onboarding, or transaction routing. Bringing such providers into crypto lending oversight would not necessarily regulate the protocol itself; rather, it would clarify which EU-regulated firms are accountable when they facilitate participation. Clearer asset boundaries would also help firms determine whether a token is subject to MiCA, another EU financial-services rule, or both, reducing classification ambiguity for issuers and service providers.

MiCA snapshot

As of September 1, MiCA had 39 EMT issuances and no ART authorized. The next step is whether the EU acts on the recommendations.

The snapshot suggests that, under the framework described, EMT issuance activity has been recorded while ART authorization remains absent in the provided figures. For market participants, the practical implication is that the rulebook may continue to evolve even as some tokens are already being issued. If the recommendations are adopted, the likely themes would be stronger reserve transparency, clearer issuer responsibility, more precise service-provider obligations, and a wider supervisory perimeter for lending-related crypto services.

Key takeaway

The EBA’s proposals point toward a more risk-sensitive application of MiCA, especially for stablecoins with complex issuer structures and for lending services that sit near the boundary between centralized platforms and DeFi interfaces.

Tags: EBA, MiCA, stablecoins, DeFi, crypto lending

Risk Disclosure