The Cardano (@Cardano) Foundation has asked the European Union to keep decentralised finance (DeFi) and staking outside any new standalone rules under the Markets in Crypto-Assets Regulation
The Cardano (@Cardano) Foundation has asked the European Union to keep decentralised finance (DeFi) and staking outside any new standalone rules under the Markets in Crypto-Assets Regulation (MiCA). The foundation argues that regulation should target actual risks and services rather than the technology itself.
The foundation submitted a 19-page response to the European Commission on September 30, as part of the Commission's review of the EU's crypto rulebook.
The foundation's central argument is that what matters is who controls the assets. ADA holders can help secure the Cardano network without transferring custody of their assets to another party or locking up their tokens. That differs from cases where an intermediary retains custody of client funds, and the foundation says the two should not fall into the same regulatory category.
Benjamin Buergi, the foundation's senior legal counsel, said regulation should follow the substance of an activity, the functions performed and the risks created, not the technology used.The foundation asked the EU to apply the existing legislative framework to those that offer financial services or manage customer assets.
The submission also covers other areas of the review. It calls for clearer rules on hybrid tokens, stablecoins and NFTs, and for a distinction between decentralised blockchain infrastructure and intermediary-controlled financial services.
On 20 May 2026, the European Commission launched a targeted consultation on the review of MiCA.It examines whether staking, lending and borrowing require dedicated regulation.MiCA currently excludes crypto-asset services provided in a fully decentralised manner without any intermediary, and the Commission asks which criteria should determine when a DeFi application is not fully decentralised.Proposed criteria include an identifiable intermediary, control via admin keys, concentration of governance power and custody of user assets.
Law firm analysis cautions against reading too much into the exercise. The consultation does not represent a final EU policy position, and it would be premature to say DeFi, staking or lending will definitely become separately regulated.Regulators including ESMA, the EBA, the ECB and AMLA have pushed for a wider perimeter.
For $ADA holders and developers building on Cardano, the outcome will determine whether non-custodial staking is treated as a financial service or as direct participation in a network. The Commission has not yet published conclusions from the review.
Cryptopolitan: Cardano Foundation urges EU to fix MiCA, not expand it to DeFi
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Maples Group: The European Commission launches MiCA review consultation
