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Brussels is reviewing whether crypto lending should fall under the Markets in Crypto-Assets regulation, advancing a question the framework has left unresolved. DeFi lending vaults are making that review harder.
The central difficulty is determining who, exactly, should be regulated. The review's direction points toward coverage, but the practical problem has no clear solution.
DeFi lending vaults do not yield an obvious party to hold accountable, leaving regulators to work out how compliance obligations could be assigned in a decentralized environment.
Brussels has not yet resolved that question. The difficulty is structural, and MiCA's eventual reach into DeFi lending will depend on how regulators answer it.
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