The European Commission is taking a long, hard look at crypto lending, and the results could reshape how DeFi operates across 27 member states.
On May 20, 2026, the Commission’s DG FISMA launched a targeted consultation to review the Markets in Crypto-Assets Regulation, better known as MiCA. The central question: should lending and borrowing of crypto assets be pulled under regulatory oversight? Responses are due by August 31, 2026.
The consultation is part of a mandatory review process baked into MiCA itself when it was adopted on May 31, 2023. Articles 140 and 142 of the regulation required an interim report by June 2025 and a full assessment by June 2027.
What MiCA covers, and what it doesn’t
MiCA was designed primarily to regulate issuers, token offerings, and crypto-asset service providers, or CASPs. DeFi, staking, and crypto lending were intentionally left outside its scope.
