The European Banking Authority has asked the European Commission to examine new MiCA rules for crypto firms that connect customers to DeFi loans.

Its September 24 response calls for a cost-benefit analysis of possible duties for intermediated borrowing and lending, and for crypto-asset service providers (CASPs) that give clients access to DeFi lending through interfaces or products.

A loan can run on an on-chain protocol while a company supplies the app that brings a customer to it. The EBA’s recommendation puts that company-controlled route within the Commission’s review, and it is a request to assess legislation, so the EBA’s response itself changes no lending rule.

The regulator said consumer risks prompted its call to examine the issue.

The EBA identified two possible changes. The first would add intermediating crypto borrowing and lending to MiCA’s list of CASP services, while the second would set requirements for CASPs facilitating access to DeFi lending protocols, whether through an interface or a product offering exposure to DeFi.

The Commission would need to weigh the scale of these activities, retail participation and the seriousness of the risks before deciding whether to pursue legislation.

Suitability tests could assess whether a customer should take part, while leverage caps and fuller disclosures could address borrowing risks.

For DeFi access, the EBA suggested extra warnings that activity through a truly decentralized protocol may lack regulatory safeguards. It also floated certification of lending protocols for resilience to cyberattacks.