Cardano Foundation submitted a 19-page response to the European Commission arguing that direct staking and DeFi should be excluded from MiCA's regulatory expansion.
Regulation & Gov ·
The Cardano Foundation submitted a 19-page submission to the European Commission opposing the expansion of the Markets in Crypto-Assets (MiCA) regulation to cover direct staking and decentralized finance activities. The Foundation's argument centers on a distinction between direct staking—where users delegate ADA while retaining custody and without token lockup—and intermediary-managed staking arrangements that would fall under existing regulatory frameworks.
The submission reflects ongoing debate over how MiCA should apply to crypto activities beyond its original scope. The Foundation contends that delegating tokens under direct staking conditions differs materially from custodial or intermediary-based models, suggesting these arrangements warrant separate treatment in the regulatory framework rather than inclusion under expanded MiCA provisions.
The European Commission's review of MiCA's scope remains in progress, with the outcome still uncertain. The Foundation's formal response represents one position in a broader consultation process that will determine whether DeFi protocols and non-custodial staking fall within future regulatory requirements.