TLDR
- The Cardano Foundation opposes extending MiCA through separate rules for DeFi, staking and direct blockchain participation.
- Cardano’s staking model lets ADA holders delegate without locking tokens or surrendering custody.
- ESMA has proposed additional safeguards for staking, lending and firms providing access to DeFi protocols.
- The European Commission has not decided whether to expand MiCA following its consultation.
The Cardano Foundation has urged the European Commission to keep decentralized finance (DeFi), staking and direct blockchain participation outside any expansion of the Markets in Crypto-Assets Regulation (MiCA). It wants rules based on financial activities and risks, rather than technology.
Cardano Foundation Draws Line on Staking
The Foundation submitted its 19-page response on September 30, 2026, and published its position on October 21. Senior Legal Counsel Benjamin Buergi said regulators should focus on parties that manage assets or control transactions.
Cardano allows ADA holders to delegate tokens to help secure its network without surrendering custody or locking funds. The Foundation says this differs from managed staking services. A recent review of Ethereum staking activity details the role of custodians and pooled providers.
EU Review Examines DeFi Services
EU regulator ESMA has proposed new staking and lending safeguards, plus a regulated service category for firms offering access to DeFi. The Cardano Foundation objects to separate rules targeting decentralized technology.
Its response says regulators should examine whether an identifiable operator performs financial services or controls customer funds. It argues that providing software or access to a network should not automatically create the same duties as managing customer assets.
NFTs, Stablecoins and Existing Laws
The Foundation also asked the EU to retain exemptions for genuinely unique non-fungible tokens. It said membership in a collection should not alone make an NFT subject to rules for interchangeable tokens.
For stablecoins, the Foundation supports boundaries between crypto and payments legislation. Separately, EU supervision of USDC will increase after regulators classified the token for closer oversight. The group also wants consistent rules across EU member states and environmental disclosures that reflect different blockchain systems.
What Happens Next in Brussels
The filing forms part of a consultation, not a final European Commission decision. Officials must assess responses before deciding whether to propose changes to MiCA or clarify how existing laws apply.
National debates continue alongside that process. In France, lawmakers backed a proposed tax on crypto-to-stablecoin swaps. That measure remains subject to further steps and concerns national taxation rather than the Foundation’s requested MiCA boundaries.
The Cardano Foundation said it will continue working with EU policymakers. Any future proposal would need to clarify how regulators treat direct staking, managed crypto services, and other blockchain activities across the bloc.
