Coinbase executive: EU DeFi proposal may force users to switch to riskier platforms.

Coinbase EU policy head Roeland Van der Stappen warned that the European Union's tightening DeFi rules could push users toward platforms with weaker investor protections. The European Securities and Markets Authority in September proposed a new regulated crypto service category for firms offering customers access to DeFi protocols, while the European Bank Authority urged the European Commission to study new crypto lending rules and floated appropriateness tests as an option. Van der Stappen said extending such tests to other DeFi services could treat simple stablecoin swaps the same as leveraged lending, with lending, liquidity provision and on-chain swaps among the most affected activities as some providers scale back or exit DeFi access entirely. He warned that restricting access on regulated platforms could fragment DeFi liquidity into "walled gardens" and drive users to less-protected providers outside the EU. Watch whether the Commission adopts the ESMA and EBA recommendations and how major regulated venues adjust their DeFi offerings in response.