8h05 ▪ 4 min read ▪ by Ariela R.
Summarize this article with:
The Cardano Foundation published on October 21, 2026 its response to the European consultation on the revision of the MiCA (Markets in Crypto-Assets) crypto law. Filed on September 30, this 19-page text opposes specific rules for DeFi and crypto staking.
In brief
- The Cardano Foundation opposes new MiCA-specific rules for DeFi and staking.
- It submitted its 19-page response to the European Commission on September 30 and then presented it on October 21.
- It wants to distinguish between ADA delegation without loss of custody and staking services offered by intermediaries.
- ESMA, for its part, proposes a regulated service for access to DeFi and targeted obligations for crypto staking.
- Nothing has been decided: the Commission’s consultation contains no legislative proposal.
What the Cardano Foundation asks of the European Commission
The Foundation believes that existing financial law should apply according to the functions performed and risks created, not according to the technology used. It therefore rejects standalone frameworks for decentralized finance (DeFi) and staking, a mechanism by which token holders help secure a proof-of-stake crypto network.
In its document, the Cardano Foundation specifically requests distinguishing two situations:
- on one side, direct participation in a decentralized crypto network;
- on the other, financial services provided by intermediaries (especially when they hold or control users’ digital assets).
On Cardano, ADA holders can delegate their tokens without giving up custody or locking them. The Foundation therefore believes this delegation should not be treated as a crypto staking service operated by an intermediary.
In force since July 1, 2026, the MiCA crypto standard excludes from its scope services provided entirely in a decentralized way without intermediaries (consideration 22). According to ESMA, the lack of a precise definition fuels divergent interpretations. The European Securities and Markets Authority also fears a “decentralization washing”: crypto actors presenting themselves as decentralized when an identifiable operator exists.
In its response dated September 30, ESMA proposes to include a definition of DeFi in the regulation and strictly limit this exemption. It also suggests a regulated service for crypto-asset service providers (CASP) acting as gateways to DeFi protocols.
Are Cardano and ESMA really opposed on crypto staking?
Not entirely, according to publicly available information. ESMA indeed considers crypto staking inherent to proof-of-stake networks. It thus refuses to automatically equate it with lending or portfolio management. It also distinguishes staking carried out directly by the holder from technical, pooled, custodial services or liquid staking.
For crypto providers, it proposes graduated obligations:
- information on rewards;
- lock-up periods;
- risk of “slashing” (penalty on a faulty validator);
- fees;
- disposition of crypto assets in case of insolvency.
Their extent would depend on the degree of intermediation and the control exercised over digital assets.
Thus, the two crypto actors seem to agree on one point: a holder who delegates his tokens himself is not a service provider. The disagreement is actually on intermediated services. The ESMA wants targeted requirements and a dedicated service for access to DeFi. For its part, the Cardano Foundation rejects new autonomous crypto regimes.
In any case, nothing is decided at present. Opened on May 20 and extended until September 30, the Commission’s consultation contains no legislative proposal. The Commission must analyze the responses before any crypto initiative. The sources consulted also do not indicate a precise timetable for the next steps. File to be continued…
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Ariela R.
My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)
DISCLAIMER
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.