European Union efforts to tighten oversight of decentralized finance could prompt regulated crypto platforms to restrict or remove access to DeFi services, potentially pushing users toward providers with fewer investor protections. Coinbase’s EU policy lead Roeland Van der Stappen said regulated exchanges may respond to new requirements by limiting access, while broader suitability tests could treat stablecoin swaps and leveraged borrowing alike despite their different risk profiles. Lending, liquidity provision and on-chain swaps could be affected, potentially worsening execution prices for EU users and fragmenting liquidity. The comments followed a September response by the European Securities and Markets Authority to the European Commission’s consultation on the Markets in Crypto-Assets Regulation, in which ESMA proposed a new regulated category for firms providing clients access to DeFi protocols and considered suitability tests for crypto lending. The European Banking Authority has also urged the European Commission to examine rules for crypto lending and borrowing. A 2026 Adan-Ipsos survey found that 49% of French crypto buyers preferred accessing DeFi through exchanges, compared with 14% who preferred personal wallets. Chainalysis reported a modest decline in German crypto activity linked largely to falling decentralized-exchange activity, while EU crypto activity rose 2.2% in the 12 months through June 2026.