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), arguing that future rules should be based on financial activities and risks rather than on technology. Where those boundaries land matters beyond Cardano: MiCA is the EU's overarching framework for crypto-asset issuance and services, and its scope determines which activities fall under licensing, custody, and conduct rules throughout the bloc.

Foundation Draws a Line on Staking

The Foundation set out its position in a 19-page response submitted on September 30, 2026, and published on October 21. Senior Legal Counsel Benjamin Buergi said regulators should focus on parties that manage assets or control transactions.

At the center of the submission is Cardano's staking design, which allows ADA holders to delegate tokens to help secure the network without surrendering custody or locking funds. The Foundation argues this differs fundamentally from managed staking services, and it pointed to a recent review of Ethereum staking activity that details the roles played by custodians and pooled providers. The distinction is a recurring one for regulators, since proof-of-stake networks rely on token holders to help process transactions, and delegation without custody transfer is a common design across major chains.

EU Review Examines DeFi Services

The position lands as EU regulators consider how, and whether, to extend the bloc's crypto framework. MiCA's current rules focus on crypto-asset issuers and service providers, leaving fully decentralized activity largely outside their reach — a gap officials are now examining. The European Securities and Markets Authority (ESMA) has proposed new safeguards for staking and lending, along with a regulated service category for firms that offer access to DeFi protocols.

The Cardano Foundation objects to separate rules targeting decentralized technology. Its response says regulators should instead examine whether an identifiable operator performs financial services or controls customer funds, and argues that providing software or access to a network should not automatically create the same obligations as managing customer assets.

NFTs, Stablecoins and Existing Laws

The Foundation also asked the EU to retain exemptions for genuinely unique non-fungible tokens, saying membership in a collection should not by itself make an NFT subject to rules designed for interchangeable tokens. How that line holds would shape how EU rules treat collectible and gaming assets that share a series or brand.

On stablecoins, the group supports maintaining boundaries between crypto and payments legislation. In a separate development, EU supervision of USDC is set to increase after regulators classified the token for closer oversight. The Foundation additionally called for consistent rules across EU member states and environmental disclosures that reflect the differences among blockchain systems.

What Happens Next in Brussels

The filing is part of a consultation, not a final European Commission decision. Officials must assess the responses before deciding whether to propose changes to MiCA or clarify how existing laws apply, making the consultation period the industry's formal window to influence how staking and DeFi access are treated.

National debates continue alongside that process. In France, lawmakers backed a proposed tax on crypto-to-stablecoin swaps, a measure that remains subject to further steps and concerns national taxation rather than the MiCA boundaries the Foundation is seeking.

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.

Source: CoinCentral