Cardano Foundation urges EU to fix MiCA, not expand it to DeFi

The Cardano Foundation said in an October 21 statement that the European Union should address existing MiCA challenges before adding rules for decentralized finance and staking. In a September 30 response to a European Commission consultation, it opposed separate DeFi and staking regulations and argued existing rules should cover firms that provide financial services or manage customer assets. The Foundation said using a public blockchain does not automatically make an entity a financial services provider; senior legal counsel Benjamin Buergi said regulation should follow an activity's substance, functions and risks rather than its technology. The Commission's document was a consultation, not a legislative proposal, asking whether further rules are needed for DeFi, staking and lending.