EU DeFi proposals could push users to riskier platforms, says Coinbase exec
Summary
Coinbase’s EU policy head, Roeland Van der Stappen, warned that proposed EU oversight of DeFi could lead regulated crypto platforms to restrict or remove DeFi access, pushing users toward providers with fewer protections. ESMA has recommended a new regulated service category for firms offering access to DeFi, while the EBA has suggested suitability tests for crypto lending. Van der Stappen argued that applying broad tests across services could treat low-risk swaps like leveraged lending. He warned restrictions could fragment liquidity, worsen trading prices and create isolated services, and called for safeguards proportionate to each activity.
