Coinbase has raised concerns regarding potential new regulations in the European Union that could push users toward less secure DeFi platforms. Ruud van der Stapppen, head of European regulatory policy at Coinbase, highlighted that the European Securities and Markets Authority has proposed distinct regulations for companies facilitating access to DeFi. Additionally, the European Banking Authority has indicated that it may assess the suitability of crypto lending for customers. Van der Stapppen cautioned that such restrictions could lead to a user exodus and fragmentation of liquidity within the market.