Cardano Foundation Opposes EU MiCA Expansion into DeFi & Staking

Cardano Foundation has formally asked the European Union to refrain from extending the MiCA framework to cover decentralized finance (DeFi) and staking services. The foundation argues that regulation should be anchored on financial risk rather than the underlying technology, warning that overlapping rules could sow uncertainty for crypto firms operating in the EU.

Regulatory Landscape

MiCA, the EU’s Markets in Crypto‑Assets Regulation, currently sets out rules for issuers of crypto assets and certain service providers. By expanding its scope to include DeFi platforms and staking, the EU would introduce a new layer of compliance that may conflict with existing national or sector‑specific rules.

For businesses, the prospect of double regulation could raise compliance costs and create legal ambiguity, especially for projects that already navigate multiple jurisdictions. Investors and service providers may face delayed product launches or additional licensing requirements.

While the Cardano Foundation’s stance does not dictate policy, it highlights a broader debate about how best to regulate emerging financial technologies. Market participants will likely monitor the EU’s deliberations closely, as any change could reshape the regulatory environment for a range of digital assets and services.

Based on reporting from Cointelegraph. Read the original.