Cardano Foundation Pushes Back On Expanding MiCA Rules To Protocol-Level DeFi

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure 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 spelled out why it believes Europe’s next round of crypto policymaking should avoid treating every blockchain interaction as a regulated financial service. In an October 21 article, its legal team explained the positions it submitted to the European Commission’s MiCA review. The response itself was filed on September 30, an important date distinction. The Foundation is not announcing that new laws were passed this week. It is describing the changes it wants policymakers to make as they assess decentralised finance, staking, lending, stablecoins and the practical limits of the existing regulation. Its argument rests on function and control. An intermediary taking custody or exercising discretion over customer assets is doing something different from a person delegating ADA stake without surrendering custody, or software that simply provides ac...