European Regulation: MiCA's DeFi Lending Challenge
Brussels is reviewing whether crypto lending activities should fall under the scope of MiCA, the EU's comprehensive digital asset regulation framework. The expansion targets decentralized finance vaults that facilitate lending, raising the question of regulatory perimeter and enforcement.
A central obstacle to regulating DeFi lending under MiCA is identifying the regulated entity itself. Unlike centralized platforms with clear corporate structures, DeFi vaults often operate without obvious counterparties or responsible parties, making it difficult for regulators to determine who bears compliance obligations. This structural mismatch between MiCA's entity-based framework and DeFi's decentralized architecture signals that enforcement may require new regulatory approaches or legislative clarification.
US Prediction Markets: State Bans Amid Federal Regulatory Dispute
Kalshi, a crypto-native prediction market platform, has been restricted in multiple US states, including Washington, as state regulators assert their authority over prediction market offerings. The company is contesting these restrictions in court while its federal regulator, the CFTC, pursues new rulemaking for the sector.
