According to Cointelegraph, the Cardano Foundation has urged the European Union not to extend the Markets in Crypto-Assets Regulation (MiCA) framework to decentralized finance (DeFi) platforms and staking activities. The request comes as the EU considers regulatory expansions for crypto-related services.
The foundation emphasized that regulation should focus on financial risk rather than technological characteristics, arguing that applying MiCA rules broadly to DeFi and staking could lead to regulatory overlap. It noted that such overlap might create uncertainty for crypto businesses operating within the EU market.
In its statement, the Cardano Foundation highlighted the importance of proportionate, risk-based approaches when developing rules for emerging crypto use cases. It reiterated that technical distinctions should not drive regulatory treatment where comparable financial risks exist.
