TL;DR: In a newly published explanation of its European consultation response, the Cardano Foundation argues for regulating activities and intermediaries rather than creating blanket rules for decentralised technology.
The Cardano Foundation has articulated its stance on the future of crypto regulation in Europe, emphasizing the need for a nuanced approach that avoids categorizing every blockchain interaction as a regulated financial service. In an article released on October 21, the Foundation’s legal team detailed the positions it submitted to the European Commission’s review of the Markets in Crypto-Assets (MiCA) framework.
Notably, the response was filed on September 30, marking a crucial timeline for the Foundation’s advocacy efforts. This is not a report of newly enacted laws; rather, it reflects the changes the Foundation believes are necessary as policymakers evaluate decentralized finance (DeFi), staking, lending, stablecoins, and the practical implications of existing regulations.
At the core of the Foundation’s argument is the distinction between different roles within the crypto ecosystem. An intermediary that takes custody of assets or exercises discretion over customer funds operates under a different framework than a user simply delegating ADA stake without relinquishing custody, or software that merely facilitates access to a public network.
The Foundation is also advocating for clearer definitions regarding hybrid tokens, the intersections with other European financial regulations, and the complexities of cross-border legal issues. While these positions are part of ongoing lobbying efforts, they are not binding exemptions. The implications for Cardano are significant, as staking and permissionless infrastructure are central to the EU discussions about who should be subject to financial services obligations.
As Europe continues to refine its regulatory landscape, the Cardano Foundation’s insights could play a pivotal role in shaping a framework that balances innovation with consumer protection.
Written by the News Desk and edited by Samuel Rae.
