Cardano Foundation urges EU against expanding MiCA rules to DeFi and staking - TradingView

The Cardano Foundation has asked European Union policymakers not to extend the scope of the Markets in Crypto-Assets (MiCA) regulation to cover decentralized finance (DeFi) and staking. According to TradingView, the foundation argues that applying the current MiCA framework to these areas could impose unsuitable requirements on systems that operate without a central intermediary.

The intervention comes as EU authorities consider how existing crypto rules should treat activities that fall outside MiCA's original design. MiCA was built primarily around issuers and service providers, while DeFi protocols and staking arrangements often function through smart contracts and distributed participants. The foundation's position reflects a broader industry debate over whether such models can be regulated under a framework designed for centralized entities without stifling innovation.

For market participants, the key issue is regulatory clarity. Any decision to broaden MiCA's reach could affect how DeFi platforms and staking services are structured and offered across the EU. Conversely, keeping these activities outside MiCA may leave gaps that national regulators or future legislation could address. Watchers should follow official EU consultations and any legislative proposals for signals on the direction of travel.