The European Banking Authority has asked the European Commission to examine whether MiCA should cover intermediated crypto borrowing and lending and crypto-asset service providers that give customers access to decentralized finance lending protocols through interfaces or products. Its Sept. 24 response proposes a cost-benefit analysis rather than an immediate rule change, citing risks including inadequate disclosures, leverage, collateral changes, hacks, outages, commingling and over-indebtedness. The EBA suggested potential safeguards including suitability assessments, leverage limits, fuller disclosures, warnings on the limited protections associated with genuinely decentralized protocols, and cyber-resilience certification for lending protocols. It also proposed considering restrictions on CASPs facilitating lending involving unauthorized issuers' asset-referenced or e-money tokens. The Commission's consultation closes Sept. 30 at 11:59 p.m. Central European Summer Time and will inform its report on MiCA's application and crypto-market developments, which may be accompanied by legislation. The EBA separately recommended work on stablecoins, asset classification and reporting while saying existing requirements for asset-referenced tokens and electronic money tokens are broadly appropriate.