Consultation by the European Commission on the inclusion of DeFi lending in the MiCA regulatory framework and the difficult positioning of Vault law Points

On 23 August, the European Commission was assessing whether or not to include DeFi lending and encrypted borrowing in the regulation of the MiCA and had initiated targeted consultations on relevant areas not covered, which would end on 30 September. One of the current disputes is the legal position of DeFi ringing vault: in the case of Morpho Vault V2, whose regulatory and wind control powers are scattered among multiple players, it is difficult to determine who should be considered a regulated service provider. MiCA currently excludes, in principle, the encryption services provided by “complete decentrization”, and how the EU will then define actual control and regulatory subjects will be key。