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

MiCA rules — The Cardano Foundation has formally urged the European Union not to create new standalone regulations for decentralized finance (DeFi) and staking, arguing that existing financial laws should apply based on activity and risk, not technology.

In a submission to the European Commission dated September 30, the foundation warned that overlapping rules between the Markets in Crypto-Assets (MiCA) regulation and existing financial laws could create legal uncertainty for crypto businesses across the bloc. The foundation’s 19-page position was outlined in a blog post on October, 21, 2026.

The organization called for a clear distinction between direct user participation in decentralized networks and financial services provided by intermediaries. It argued that users delegating ADA tokens to help secure the Cardano network, without surrendering custody, should be treated differently from staking services operated by custodial third parties.

The submission comes as EU regulators, including the European Securities and Markets Authority (ESMA), consider expanding oversight. ESMA recently recommended additional safeguards for staking and lending, and a new regulated category for firms providing access to DeFi protocols.