Cardano Foundation opposes broader EU DeFi, staking rules under MiCA

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Cardano opposes EU DeFi rules

Highlights

Cardano Foundation urged the European Commission to differentiate direct DeFi participation from intermediary-led services in its 19-page Sept. 30 MiCA submission.
It warned that unclear distinctions and overlapping obligations between MiCA and existing financial laws could raise regulatory uncertainty for EU crypto businesses.
On Oct. 20, Cardano and five blockchain groups asked the U.S. SEC to recognize digital commodities as non-securities under the proposed crypto framework.

Regulatory submission targets MiCA scope

As reported by Cointelegraph, the Cardano Foundation said in a Wednesday blog post summarizing its 19-page Sept. 30 submission to the European Commission that the EU should distinguish between direct participation in decentralized networks and intermediary-led financial services involving custody or control of customer assets.

The foundation argued that regulation should be based on the substance of an activity, the functions performed and the risks created, rather than the technology used. It said Cardano users can delegate native ADA tokens to support network security without giving up custody or locking their holdings, and that this model should be treated differently from staking services run by intermediaries.

The submission also called for clearer boundaries between the EU’s Markets in Crypto-Assets Regulation, or MiCA, and existing financial laws. The foundation warned that overlapping obligations and inconsistent interpretation across member states could increase uncertainty for crypto businesses operating in the bloc.

Broader crypto policy debate widens

Its intervention comes as EU authorities consider whether to expand supervision of crypto-related services beyond the current framework. In September, the European Securities and Markets Authority recommended additional safeguards for staking, lending and borrowing, and proposed a new regulated service category for firms offering access to DeFi protocols.

The Cardano Foundation is also pressing for clearer digital-asset rules in the U.S. On Oct. 20, it joined five other blockchain organizations in a letter urging the Securities and Exchange Commission to formally recognize digital commodities as non-securities under the regulator’s proposed crypto framework.

Our earlier article examined Mario Draghi’s warning that keeping interest rates above growth for too long can worsen public-debt dynamics and ultimately raise the risk of “fiscal dominance” and higher inflation. We also noted his call for central banks to keep fighting inflation while avoiding unnecessary damage to investment and long-term growth, alongside EU-level measures such as deeper market integration and targeted support for innovation.

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