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EU aims to regulate crypto lending under MiCA, proposing leverage caps and DeFi protocol certification.

Market News
25 Sep 2026
AMBCrypto
View Source
Bearish
EU aims to regulate crypto lending under MiCA, proposing leverage caps and DeFi protocol certification.

The European Banking Authority (EBA) wants to extend the EU's MiCA framework to include crypto lending, addressing risks from DeFi lending and borrowing. The EBA highlights consumer protection concerns such as over-leverage, hacks, and fraud, proposing measures like leverage limits, disclosure rules, and cyber resilience certification for DeFi protocols. This move could also restrict unlicensed stablecoins like USDT from DeFi lending. Meanwhile, industry leaders Aave and Morpho disagree on how to classify DeFi vaults for regulation, complicating the regulatory landscape. The EU's approach contrasts with the U.S. SEC's focus on securities laws for discretionary vaults, indicating ongoing debate on how to best regulate crypto lending.

Aave's market cap stands at Rp42.7 trillion with a 24-hour trading volume of Rp7.22 trillion on Pluang as of Sep 26, 2026 00:21 WIB. The token price has risen by 6.79% in the last day, reflecting active trading and interest despite regulatory debates in the EU over DeFi lending frameworks. On Pluang, 57% of orders are buys, with investors typically holding Aave for about 105 days, indicating steady confidence amid the evolving regulatory landscape.

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