Cardano Foundation Urges EU to Refine MiCA Instead of Expanding Scope

The Foundation’s September 30 submission highlights a critical distinction between decentralized infrastructure and intermediary-led financial services. It contends that regulatory oversight should hinge on the level of control an entity exerts over customer assets, rather than the underlying technology. By treating simple protocol participation—such as delegating tokens for network security—the same as custodial financial services, the Foundation warns that regulators risk stifling innovation without meaningfully increasing protection.

Beyond DeFi, the organization is advocating for a more precise approach to asset classification. It specifically requests clearer guidance for hybrid tokens and stablecoins to resolve inconsistencies across EU member states. The Foundation also maintains that unique NFTs should remain exempt from strict financial regulations, arguing that membership in a collection does not inherently render an asset fungible. As the European Commission reviews the implementation of MiCA, the Cardano Foundation cautions that fragmented national interpretations and overly complex compliance requirements will disproportionately disadvantage smaller firms, urging a move toward harmonized supervisory practices that respect the technical realities of proof-of-stake networks.