ESMA Proposes MiCA Rules for DeFi Gateways, Staking and Lending

The European Securities and Markets Authority (ESMA) has outlined proposals to bring additional parts of the crypto ecosystem under the Markets in Crypto-Assets (MiCA) framework. Among the changes under consideration are specific rules for providers that connect users to decentralized finance (DeFi) protocols — commonly described as DeFi gateways — as well as clearer regulatory treatment for staking and lending activities. Under ESMA’s proposals, firms offering services that would require a MiCA licence could face a blanket prohibition on involvement with stablecoins that do not meet MiCA’s compliance standards. That curbs not only trading and issuance services but also extends to custody and the transfer of those noncompliant stablecoins, according to the regulator’s outline. By targeting DeFi gateways, the proposals aim to capture intermediaries that facilitate access to on-chain protocols without necessarily operating centralized trading venues. The inclusion of staking and lending signals an intent to regulate use cases that have become significant sources of user activity and liquidity within the crypto market. If adopted, the changes would tighten the compliance burden on crypto firms operating in the EU, requiring them to ensure any stablecoins they handle meet MiCA requirements or else cease offering MiCA-licensable services involving those tokens. The move reflects ongoing efforts by European authorities to reduce regulatory arbitrage and to bring more parts of decentralized finance under established supervisory rules.