Cardano Warns of Regulatory Overlap in EU Crypto Laws
The foundation said rules should reflect control and risk, and warned that overlapping requirements could burden smaller crypto businesses.
- On Wednesday, the Cardano Foundation submitted a response to the European Commission urging regulators to avoid new standalone rules for DeFi and staking, arguing existing financial laws should govern such activities based on their specific risks and functions.
- European policymakers are currently reviewing MiCA implementation and considering whether activities outside its scope require additional oversight, weighing potential overlaps with existing financial services legislation.
- The Foundation distinguished direct participation in decentralized networks from financial services provided by intermediaries; Cardano users can delegate ADA tokens to secure the network without surrendering custody, creating different regulatory considerations.
- Inconsistent national interpretations continue creating uncertainty for crypto businesses, prompting the Foundation to suggest harmonized conflict-of-laws provisions aligned with ESMA's 2027 supervisory priorities for coordinating regulators.
- Seeking clarity across the Atlantic, the Foundation joined five other blockchain organizations in an Oct. 20 letter urging the Exchange Commission to recognize digital commodities as non-securities under its proposed crypto framework.
13 Articles
13 Articles
Can EU improve MiCA without new rules? Cardano Foundation makes its case
The Cardano Foundation is against bringing decentralized finance, staking and other blockchain activities under new European Union crypto regulations and argues that policymakers should rather focus on improving the existing Markets in Crypto-Assets Regulation. In its September 30 response to…
The Cardano Foundation opposes a MiCA crypto regime dedicated to DeFi and staking. Its position is partly in line with that of the ESMA, but not on intermediated services. The MiCA article: The Cardano Foundation opposes its extension to DeFi and the crypto staking appeared first on Cointribute.
Cardano Foundation urges EU to fix MiCA, not expand it to DeFi
The Cardano Foundation believes that the European Union (EU) must address the existing challenges related to MiCA before introducing new regulations pertaining to decentralized finance (DeFi) and staking. It made these comments in a statement released on October 21 and insisted that being on a public blockchain does not automatically mean serving as a financial...
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