- Cardano Foundation urges the EU not to expand MiCA rules to introduce separate regulations for DeFi and staking.
- The foundation wants crypto regulations to focus on financial risks and activities rather than blockchain technology.
- Cardano says ADA holders can stake their tokens without transferring custody or locking their assets.
The Cardano Foundation has requested the European Union (EU) not to develop rules for finance (DeFi) and staking while it is reviewing the Markets in Crypto-Assets Regulation (MiCA).
In a letter sent to the European Commission on September 30, the foundation stated that rules should not focus on the technology being used. Instead, they should examine the risks and what the services actually do.
More regulation doesn’t mean better regulation.
We just released a response to the EU’s MiCA review consultation, where we call for greater regulatory clarity and to improve the existing framework rather than expanding it.
Read our response: https://t.co/8IXN4aZxeE
— Cardano Foundation (@Cardano_CF) October 21, 2026
The foundation shared its suggestions in a post on Wednesday. These suggestions cover DeFi, staking, stablecoins, non-fungible tokens (NFTs), and other related activities.
Cardano Foundation Opposes Separate DeFi & Staking Regulations
The foundation said that direct participation in networks should be treated in a different way than financial services provided by intermediaries.
On Cardano, ADA holders can delegate their tokens to help secure the network. They don’t give up control of their assets. They also don’t lock their tokens. The foundation said this is different from intermediated staking services. Those services might take custody of your tokens. They might also manage your tokens without your input.
It warned that using the rules for both activities could limit decentralized participation and create unnecessary compliance burdens. Instead, the foundation wants regulators to focus on parties that can be identified and that perform functions and on the risks they create.
MiCA Review Highlights Regulatory Overlaps
The foundation also asked for limits between MiCA and current EU financial services rules especially the Markets in Financial Instruments Directive II (MiFID II).
It mentioned that different understandings across EU countries could make things harder for businesses working with crypto. Clear information about hybrid tokens and who is responsible for regulation could help make things more certain without adding more rules to what is already there.
The submission also asked regulators to keep MiCA’s rule that special NFTs should not be included. The foundation said that an NFT should not be seen as something that can be replaced just because it is part of a group or has some things in common with other tokens.
It also did not agree with making rules just for NFT services, prediction markets, perpetual futures and crypto loans. It suggested that these activities should be checked using the rules that are already in place when they fit.
Cardano Calls For Clearer Rules Across Europe
The foundation also pushed for rules for tokenized assets, clearer requirements for stablecoins, and fewer overlaps with payment-services legislation.
It backed an approach to market access for third countries, including keeping genuine reverse solicitation and taking into account recognition of foreign regulatory frameworks that are similar.
This position comes as the European Securities and Markets Authority (ESMA) has suggested safeguards for staking, lending, and borrowing activities. ESMA also proposed a category for firms that offer access to DeFi protocols.
The Cardano Foundation cautioned that much regulation could increase compliance costs make it harder to attract investment and put smaller crypto businesses at a disadvantage.
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