Stani Kulechov, founder of Aave, criticized the proposals by the European Central Bank and the European Banking Authority to extend the ban on stablecoin yield beyond issuers and licensed service providers. Both institutions want this prohibition to also cover lending, borrowing, and staking, even when no regulated intermediary is involved. The ECB and EBA also want to regulate how licensed entities can direct their clients toward decentralized protocols, which would threaten European platforms’ access to Aave. The protocol dominates decentralized credit with approximately 34 billion dollars in funds supplied across its markets. Any extension of the ban must go through a vote by the European Parliament and Council, not merely a recommendation.
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