MiCA regulation for DeFi vaults faces challenges

The core difficulty is attribution: MiCA was built around identifiable intermediaries, while DeFi vaults distribute responsibility across code, governance and users, leaving no obvious addressee for licensing or liability. This matters most for EU-facing lending products and the protocols that host them, since a broad reading of MiCA could pull vault activity into a regime not designed for it. Whether Brussels narrows the scope or forces protocols into a compliance wrapper is the open question, and it will shape where DeFi lending activity is able to operate.