Key facts
- Cardano Foundation urged EU against new, standalone regulations for DeFi and staking.
- Regulation should be based on financial risks and functions, not technology.
- Cardano users can delegate ADA tokens without losing custody or locking them.
- Overlapping crypto rules could create uncertainty for EU businesses.
- ESMA recommended additional safeguards for staking, lending, and borrowing in September.
- Cardano Foundation also urged US SEC to recognize digital commodities as non-securities.
The Cardano Foundation has urged the European Union to avoid expanding its Markets in Crypto Assets Regulation (MiCA) to cover decentralized finance (DeFi) and staking. In a blog post published on October 21, 2026, the foundation detailed its September 30 submission to the European Commission. The foundation argued that existing financial laws, based on the risks and functions of activities rather than the underlying technology, should govern DeFi and staking. It highlighted that Cardano users can delegate ADA tokens without relinquishing custody or locking their assets, differentiating this from intermediary-operated staking services. The foundation warned that overlapping regulations could create significant uncertainty for crypto businesses operating across the EU. In September, the European Securities and Markets Authority (ESMA) had recommended additional safeguards for staking and lending, and a new regulated service category for DeFi access. Separately, the Cardano Foundation joined other blockchain organizations in urging the US SEC to classify digital commodities as non-securities.