Jack Paul 
Coinbase’s head of EU policy is warning that Brussels’ push to bring decentralized finance under closer supervision may have an unintended effect. Roeland Van der Stappen told Cointelegraph that tighter rules could send users toward platforms with fewer protections, not more. I think that concern is easy to miss because the policy debate often sounds technical. The practical result for users could be simpler: less access to DeFi through regulated crypto platforms.
EU Weighs New DeFi Oversight
In September, the European Securities and Markets Authority responded to the European Commission’s consultation on the Markets in Crypto-Assets Regulation, or MiCA. ESMA recommended a new category of regulated crypto services for firms that give customers access to DeFi protocols. The European Banking Authority took a related step. It urged the Commission to study new rules for crypto lending and borrowing, including cases where regulated platforms give customers access to DeFi lending protocols. The EBA listed suitability tests as one option. Such tests check whether a service fits a customer.
Why Access Could Shrink
Van der Stappen said applying those tests broadly to DeFi could create odd results. A simple stablecoin swap might be treated like leveraged lending, even though the risks are different. Lending, liquidity provision and on-chain swaps would be the most exposed activities, he said. Some providers may narrow their offerings. Others could withdraw DeFi access altogether. Regulated platforms might decide the compliance burden is not worth it. That seems plausible, especially for services with thin margins.
Van der Stappen argued for a proportionate approach. In his view, crypto-asset service providers should be allowed to keep offering access with safeguards matched to the activity. That would mean rules tied to what the customer is actually doing, not a single test for every DeFi interaction.
Liquidity and User Choice at Stake
Restricting access through regulated platforms could split DeFi liquidity into smaller pools, Van der Stappen said. EU users might then get worse prices on trades. He also warned that the rules could encourage walled gardens, or isolated DeFi services, and push users toward providers outside the EU with fewer safeguards. That is the core tension. Rules meant to protect investors may make the protected route less useful, while leaving other routes open.
There is some evidence that users like exchange access. A 2026 Adan-Ipsos survey found that 49% of French crypto buyers preferred reaching DeFi through exchanges, compared with 14% who favored personal wallets.
Mixed Market Signals
The market picture is not one-directional. A Chainalysis report on Monday tied a modest decline in German crypto activity largely to lower decentralized exchange activity. Across the EU, crypto activity grew 2.2% in the 12 months through June 2026. A 2025 Chainalysis report described DeFi as a small but growing part of Europe’s crypto market. In the European Economic Area, May 2025 was the strongest month for DeFi lending activity in the period Chainalysis examined.
For now, the debate is still at the consultation stage. But the direction matters. If EU regulators apply broad suitability checks to DeFi access, some regulated platforms may step back. Users could then face a choice between fewer protected options and more risky ones. That is not a theoretical concern. It is the likely result of rules that do not match the activity.