The EU's Markets in Crypto-Assets Regulation (MiCA) is only a few years old, and it is already being reviewed. The European Commission ran a public consultation on revising MiCA that closed on September 30, 2026. This week, two important sets of recommendations became public: one from French authorities and one from the European Banking Authority (EBA).
Both focus on areas MiCA left largely untouched, especially decentralized finance (DeFi) and crypto lending. None of these ideas are law yet, but they show where European regulation could be heading.
A quick reminder: what MiCA covers today
MiCA sets EU-wide rules for crypto-asset service providers (CASPs), such as exchanges, brokers and custodians, and for issuers of stablecoins. It created two stablecoin categories: e-money tokens (EMTs), which track a single official currency, and asset-referenced tokens (ARTs), which track a basket or other assets.
Some areas were deliberately left out. MiCA's Recital 94 says the regulation should not address crypto lending and borrowing. Fully decentralized services, where no intermediary is involved, are also largely outside its scope. That is the gap the new proposals are trying to address.
What French authorities proposed
France's Treasury, its market regulator (AMF), the Banque de France and the banking supervisor (ACPR) sent a joint response to the Commission's consultation. According to reporting on the submission, the main points are:
- Clearer responsibilities and due diligence for intermediaries that give users access to DeFi.
- A form of protocol certification to improve protection for DeFi users.
- Clearer rules for crypto staking, lending and borrowing.
- Clearer boundaries between MiCA, financial instruments law and payment services rules, especially where one activity needs several licenses.
- Stronger oversight by the European Securities and Markets Authority (ESMA) of significant CASPs and crypto groups.
- Support for euro-denominated stablecoins and tokenized bank deposits, with safeguards for stablecoins issued both inside and outside the EU.
What the EBA asked for
The EBA asked the Commission to study possible MiCA changes for crypto lending, and to run a cost-benefit analysis before any legislation. Options it put forward include:
- Adding crypto borrowing and lending intermediation to the list of regulated CASP services.
- Suitability checks, leverage limits and fuller disclosures for lending intermediaries.
- Extra risk warnings for CASPs that connect customers to DeFi lending.
- A possible ban on CASPs facilitating lending or borrowing with tokens that meet the EMT or ART definitions but are not authorized under MiCA.
- A protocol certification program that would assess, at minimum, resilience to cyberattacks.
The EBA also noted that crypto lending or borrowing was intermediated in at least 16 EU member states. Separately, ESMA has proposed scaled rules for crypto lending, including disclosures and a regulated service for firms that connect customers to DeFi protocols.
What this does not mean
These are recommendations, not rules. The French submission and the EBA request will feed into the Commission's review, which may or may not lead to a legislative proposal. Any new law would then need to go through the EU legislative process. Nothing changes today for users of DeFi protocols or crypto platforms in Europe.
It is also worth noting the common pattern. Both proposals mostly target intermediaries, meaning firms that serve customers and connect them to DeFi, rather than open-source code on its own. As one industry adviser quoted by TokenPost put it, "If the firm can lose your money, regulate the firm."
What could change for users
If parts of these proposals are adopted, EU users could see:
- More risk warnings and suitability questions before using lending or DeFi features through a regulated platform.
- Limits on leverage for crypto loans offered through intermediaries.
- Fewer non-authorized stablecoins available in lending products offered by EU-regulated firms.
- Certified or audited protocols being preferred by regulated platforms.
- Possibly fewer retail yield products, if some providers decide to move outside the EU.
Practical takeaways
- Check whether the stablecoins you use are authorized under MiCA, as this already affects which ones some EU platforms list.
- Understand the difference between swapping, lending and staking. Each carries different risks, and regulators are treating them differently.
- Before using any DeFi lending product, read its liquidation rules, collateral requirements and smart contract audit history.
- Follow official sources such as the European Commission, ESMA and EBA rather than social media summaries.
For simple swaps between supported assets, AviorSwap lists 17+ networks. This article is for information only and is not legal or investment advice.