TL;DR: Within a recently released breakdown of its response to a European consultation, the Cardano Foundation contends that regulations should target specific activities and intermediaries rather than imposing blanket mandates on decentralised technology.
The Cardano Foundation has detailed its rationale for why Europe’s upcoming phase of cryptocurrency policy should refrain from classifying every blockchain transaction as a regulated financial service. In an October 21 post, the organisation’s legal team outlined the stances it submitted for the European Commission’s Markets in Crypto-Assets (MiCA) review.
The submission was officially lodged on September 30, marking an important distinction in timing. The Foundation is not declaring that new legislation has been enacted this week; instead, it is detailing the adjustments it hopes lawmakers will adopt as they evaluate decentralised finance, staking, lending, stablecoins, and the boundaries of current regulatory frameworks.
The core of its position relies on function and control. There is a distinct difference between an intermediary that assumes custody or exerts discretion over user funds, and an individual who delegates ADA stake while retaining custody, or software designed solely to grant access to a public network.
Additionally, the Foundation advocates for more precise classifications regarding hybrid tokens, intersections with broader European financial mandates, and cross-border legal challenges. These represent advocacy stances rather than guaranteed exemptions. For Cardano, the core importance lies in the fact that staking and permissionless networks are at the heart of the EU discussions concerning precisely who ought to be subjected to financial-service compliance duties.
Written by
Yuki Yamamoto
