Cardano Foundation Urges EU to Clarify MiCA, Opposes Separate DeFi Rules

The Cardano Foundation has formally submitted its position to the European Commission regarding the ongoing review of the Markets in Crypto-Assets Regulation (MiCA). The foundation argues that regulatory obligations should be strictly tied to an operator's actual control over customer assets and transactions rather than applying blanket rules to decentralized software developers. By highlighting the distinction between non-custodial staking on the Cardano blockchain and custodial service providers, the foundation seeks to prevent over-regulation of decentralized finance (DeFi) activities. This submission, made public on October 21, addresses critical gaps in the current framework, including the treatment of multi-functional tokens, cross-border ownership, and stablecoins. The European Commission is currently evaluating whether additional safeguards are necessary for DeFi, with a full report on MiCA's application expected by June 30, 2027. This intervention is significant for the RWA market as it attempts to define the boundary between regulated financial intermediaries and decentralized infrastructure. Establishing clear legal definitions for control and custody is essential for the future integration of tokenized real-world assets into the European digital economy.