ME News update, October 2 (UTC+8): Aave founder Stani Kulechov posted that he is disappointed with the responses from the European Central Bank (ECB) and the European Banking Authority (EBA) to the MiCA consultation. He noted that the relevant authorities not only advocate banning interest-bearing stablecoin payments, but also propose restricting crypto-asset service providers (CASPs) from offering users access to DeFi, including yield-generating agreements involving stablecoins that have not been authorized under MiCA, without clearly explaining the practical implementation framework. Stani also mentioned that the proposals suggest using so-called “suitability tests” to limit which user groups can access DeFi, and considering a certification regime for DeFi lending protocols. He argued that if regulators decide which protocols are suitable for European users, it could lead DeFi to form more closed ecosystems, weakening the liquidity and network effects of open-finance networks. Stani said that excessive restrictions may increase barriers to innovation and slow the development of open, transparent, and auditable financial infrastructure. He believes that stablecoins, DeFi, and tokenized securities are expected to reduce friction in financial services, improve transparency, and broaden channels through which users can access financial opportunities, and he urged European regulators to place users and their interests at the core of the regulatory framework. Finally, he said: “DeFi will ultimately win.” (Source: ME)