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.
The Cardano Foundation has urged the European Union not to introduce new, standalone regulations for decentralized finance and staking, arguing that existing financial laws should govern such activities based on their functions and risks rather than the technologies they use.
In a Wednesday blog post outlining its 19-page Sept. 30 submission to the European Commission, the foundation called for a distinction between direct participation in decentralized networks and financial services provided by intermediaries, particularly those involving custody or control of users’ assets.
“Regulation should follow the substance of an activity, the functions performed, and the risks created, not the technology through which it is conducted,” the foundation wrote.