Cardano Foundation urges EU against expanding MiCA rules to DeFi and staking

The Cardano Foundation submitted a 19-page proposal to the European Commission urging the EU not to introduce standalone regulations for decentralized finance (DeFi) and staking, arguing that existing financial laws should govern these activities based on their functions and risks, not the underlying technology. The foundation noted that Cardano users can delegate native ADA tokens to secure the network without surrendering custody, distinguishing this from intermediary staking services. The submission also called for clearer distinctions between MiCA and existing financial laws to prevent regulatory uncertainty across member states.