Cardano Foundation urges EU not to expand MiCA to DeFi and staking
The Cardano Foundation has urged the European Commission to keep decentralized finance, staking, and direct protocol participation out of standalone MiCA rules, arguing that regulation should focus on actual financial risks rather than underlying technology.
The Cardano Foundation has pushed back against expanding the European Union's Markets in Crypto-Assets regulation during the framework's review process. In a 19-page submission responding to the European Commission's consultation, filed on September 30, the foundation urged regulators not to extend MiCA rules to cover decentralized finance, staking, or direct protocol participation.[1][2][3][5]
Advocating for clearer rules and a technology-neutral approach, the foundation argued that regulatory oversight should target actual financial risks and services rather than the technology itself. It warned that broader regulatory mandates could stifle innovation and drive up compliance costs, while overlapping requirements risk creating persistent uncertainty for crypto businesses operating across the EU.[1][4][5]
To highlight the nuances of protocol mechanics, the foundation noted that ADA holders can participate in staking without locking their tokens or relinquishing custody. It emphasized that noncustodial protocol mechanics operate fundamentally differently from setups where centralized intermediaries retain custody of client funds.[1]
Key facts
- The Cardano Foundation filed a 19-page response to the European Commission's MiCA consultation on September 30.
- The foundation urged the EU not to extend MiCA regulations to DeFi, staking, or direct protocol participation.
- The Cardano Foundation called for a technology-neutral approach that regulates actual financial risks and services rather than underlying technology.
- The foundation warned that broader rules and overlapping requirements could inflate compliance costs, stifle innovation, and cause uncertainty for EU crypto firms.
- The Cardano Foundation highlighted that ADA holders can stake without locking tokens or surrendering custody, unlike models involving custodial intermediaries.
Sources · 5 sources
- BS
BSCN@BSCNewsPost on X ·
Cardano Warns EU Against Widening MiCA's Reach The Cardano (@Cardano) Foundation wants the EU to keep DeFi and staking outside new standalone rules under MiCA. The foundation argues regulation should target actual risks and services, not the technology itself. The Cardano Foundation says $ADA holders can stake without giving up custody or locking their tokens. This is unlike the case where intermediaries retain custody of client funds. The foundation filed its response to the European Commission’s consultation on September 30.
Open source - CO
Cointelegraph@CointelegraphPost on X ·
🇪🇺 JUST IN: Cardano Foundation urges the EU against expanding MiCA to DeFi and staking, calling for rules based on financial risks rather than technology. https://t.co/haqdCGu3Hm
Open source - CO
CoinGape@CoinGapeMediaPost on X ·
🚨 BREAKING: The Cardano Foundation has submitted a 19-page response urging the European Commission not to extend MiCA regulations to DeFi, staking, or direct protocol participation. 🔗Know More in the comments. https://t.co/1ih4F9KPaD
Open source - CT
Coin TelegraphArticle ·
Cardano Foundation urges EU against expanding MiCA rules to DeFi and staking The foundation called for regulation based on financial risks rather than technology, warning that overlapping rules could create uncertainty for crypto businesses across the EU.
Open source - CN
crypto.news@cryptodotnewsPost on X ·
JUST IN: Cardano Foundation pushes back against expanding EU crypto regulation In its MiCA review submission, the foundation called for clearer rules and a technology-neutral approach, warning that broader regulatory requirements could raise compliance costs and stifle innovation.
Open source