Aave Founder Criticizes European Regulatory Proposal Limiting DeFi Access

Stani Kulechov expressed disappointment over the European Central Bank and the European Banking Authority's response to the MiCA consultation. The proposal advocates for banning stablecoin payments for yields and suggests restricting access to DeFi for users by limiting the user base through "suitability tests." It also considers implementing a certification system for DeFi lending protocols, but does not clarify the execution framework. Kulechov believes that allowing regulators to decide which protocols are suitable for European users may create more closed ecosystems, weakening the liquidity and network effects of open financial networks, and excessive restrictions could increase innovation resistance. He pointed out that stablecoins, DeFi, and tokenized securities are expected to reduce friction in financial services, enhance transparency, and expand user access to financial services. He urged European regulators to place users and their interests at the core of the regulatory framework, stating that "DeFi will ultimately prevail."

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