The Cardano Foundation has taken a firm stance against the European Commission’s potential expansion of the Markets in Crypto-Assets Regulation (MiCA). The organization is calling for a regulatory framework that prioritizes the nature of financial activities and associated risks, rather than the underlying technology itself.
Cardano Foundation Draws Line on Staking
In a detailed response submitted on September 30, 2026, and publicly released on October 21, the Foundation outlined its concerns. Senior Legal Counsel Benjamin Buergi stressed that regulators should focus on entities that manage assets or exert control over transactions, rather than imposing blanket rules on decentralized platforms.
Cardano’s unique staking model allows ADA holders to delegate their tokens to contribute to network security without relinquishing custody or locking their funds. This operational difference is significant when compared to traditional managed staking services, as highlighted in a recent analysis of Ethereum staking activity, which emphasizes the roles of custodians and pooled providers.
EU Review Examines DeFi Services
The European Securities and Markets Authority (ESMA) has proposed additional safeguards for staking and lending, as well as a new regulatory category for firms facilitating access to decentralized finance (DeFi) protocols. However, the Cardano Foundation has expressed its opposition to these separate rules targeting decentralized technologies.
In its response, the Foundation argues that regulators should focus on identifying whether a specific operator is providing financial services or controlling customer funds. It contends that merely providing software or access to a network should not impose the same responsibilities as managing customer assets.
NFTs, Stablecoins and Existing Laws
The Foundation has also urged the EU to maintain exemptions for genuinely unique non-fungible tokens (NFTs). It argues that being part of a collection should not automatically subject an NFT to the same regulations as interchangeable tokens.
Regarding stablecoins, the Foundation advocates for clear distinctions between cryptocurrency regulations and traditional payment legislation. Additionally, EU supervision of USDC is set to increase as regulators have classified this token for closer oversight. The Foundation calls for uniform regulations across EU member states and environmental disclosures that reflect the diverse nature of blockchain technologies.
What Happens Next in Brussels
This response is part of a larger consultation process, and a decision from the European Commission is yet to materialize. Officials are tasked with evaluating feedback before determining whether to amend MiCA or clarify existing laws.
Meanwhile, national discussions are taking place, such as in France, where lawmakers have supported a proposed tax on crypto-to-stablecoin swaps. This initiative is still subject to further deliberation and pertains to national tax policies, rather than the broader MiCA regulatory framework advocated by the Foundation.
The Cardano Foundation remains committed to engaging with EU policymakers during this process. Any forthcoming proposals must clarify the regulatory stance on direct staking, managed crypto services, and other blockchain-related activities across Europe.
