EU's EBA proposes MiCA rules for DeFi lending as Aave slams Morpho's vault model
- —EBA proposed regulating DeFi lending under MiCA with leverage caps and protocol certification
- —Regulators see arbitrage risk as MiCA bans stablecoin yield but USDC and EURC earn it via DeFi
- —Vaults segment holds about $10 billion within a $54 billion DeFi lending market
- —Aave and Morpho disagree on classifying vaults as non-custodial or discretionary
Why it matters: If adopted, the rules could impose leverage limits and bar unlicensed stablecoins like USDT from DeFi lending in the EU.
Source: AMBCrypto