The Cardano Foundation has urged European Union policymakers to avoid expanding the scope of the Markets in Crypto-Assets (MiCA) regulations to cover decentralized finance (DeFi) platforms and staking services. In comments reported by Cointelegraph.com News, the foundation warned that applying MiCA rules to these emerging sectors could create overlapping regulatory requirements and legal uncertainty for crypto businesses operating across the EU.
- The Cardano Foundation called on the EU not to expand MiCA rules to DeFi and staking.
- Regulation should be based on financial risks, not technology, the foundation said.
- Overlapping rules could create uncertainty for EU crypto businesses, the group warned.
- The foundation made its position known through a submission reported by Cointelegraph.com News.
The EU’s MiCA framework, set to take effect in 2024, aims to regulate crypto-assets and service providers. While designed to bring clarity, the rules have sparked debate over whether they should extend to newer areas like DeFi and staking. The Cardano Foundation’s intervention reflects broader industry concerns that overreaching regulation could stifle innovation or push services outside the regulated perimeter.
Crypto firms operating in the EU are closely watching the final shape of MiCA. If DeFi protocols and staking services fall under its scope, businesses may face dual compliance burdens alongside national supervisors. The foundation’s appeal highlights how blockchain-based platforms, which often lack traditional intermediaries, could be disproportionately impacted by rules built for centralized actors.
EU lawmakers and regulators have yet to issue a formal response to the Cardano Foundation’s request. Industry participants are likely to continue submitting feedback as the European Banking Authority and national regulators work on implementing guidelines for MiCA, including how it applies to non-custodial services.
Verified by the source:
- The Cardano Foundation made a public appeal regarding the scope of MiCA rules.
- Its focus was on DeFi and staking sectors.
- The concern centered on regulatory risk and business uncertainty.
- Cointelegraph.com News reported the foundation’s position.
Still unconfirmed:
- Whether EU officials will respond or revise MiCA’s scope.
- The exact legal text or submission referencing technology-neutral regulation.
- Any timeline for formal policy decisions.
- Specific examples of businesses affected or quoted by name.
As global crypto regulation takes shape, the boundary between traditional finance and decentralized systems is being tested. The outcome of debates like this will influence whether Europe becomes a hub for Web3 innovation or faces an exodus of DeFi developers and staking operators.
Watch for official responses from EU institutions and whether the final MiCA implementing acts include provisions addressing DeFi and staking services.