The Cardano Foundation is asking European Union policymakers not to create separate rules for decentralized finance and staking, arguing that regulation should be based on the activities being performed and the risks they create rather than the underlying technology.
According to Cointelegraph, the foundation outlined its position in a 19-page submission to the European Commission dated Sept. 30 and summarized it in a blog post published Wednesday. It said existing financial laws should apply where appropriate, while warning that additional, overlapping requirements could make compliance less predictable for crypto businesses operating across the EU.
Focus on activity and control of assets
A central part of the foundation’s proposal is a distinction between people participating directly in decentralized networks and companies offering financial services around those networks. In particular, it wants regulators to differentiate between network participation that does not involve taking control of a customer’s assets and intermediary services that may involve custody or control.
The foundation said users of Cardano can delegate the network’s native ADA tokens to help secure the blockchain without giving up custody of the tokens or locking them. It argued that this type of participation should not automatically be treated in the same way as staking services offered by intermediaries.
“Regulation should follow the substance of an activity, the functions performed, and the risks created, not the technology through which it is conducted,” the foundation wrote.
That approach would put the emphasis on what a service does and the exposures it creates. It would also seek to avoid treating different activities alike solely because they use blockchain or decentralized technology.
MiCA overlap and EU regulatory debate
The submission also called for clearer boundaries between the European Union’s Markets in Crypto-Assets Regulation, known as MiCA, and other financial legislation. The foundation warned that overlapping rules, combined with differing interpretations among EU member states, could increase uncertainty for crypto companies.
The appeal comes as European regulators examine whether additional safeguards are needed for crypto-related services. In September, the European Securities and Markets Authority recommended further protections for staking, lending and borrowing. It also proposed a new regulated service category for companies that provide access to decentralized-finance protocols.
DeFi generally refers to financial services delivered through blockchain-based protocols rather than traditional centralized institutions. Staking, meanwhile, involves using or delegating crypto assets to support the operation and security of a blockchain. The regulatory question is whether, and when, these activities should be treated like services provided by financial intermediaries.
Cardano and wider regulatory campaign
The foundation’s position in Europe follows a separate effort in the United States. On Oct. 20, it joined five other blockchain organizations in a letter to the US Securities and Exchange Commission asking the agency to formally recognize digital commodities as non-securities under its proposed crypto framework.
Moneyiar market picture
Moneyiar data at 23:19 on Oct. 22, 2026, showed Cardano’s ADA at $0.211815673, down 6.23% over 24 hours and 7.6% over seven days. Cronos was $0.0560949158, down 4.12% in 24 hours and 3.1% over seven days. Aethir stood at $0.0058611494, down 5.93% over 24 hours and 0.66% over seven days. Moneyiar data at 23:18 showed BAS at $0.0164163329, down 9.76% over 24 hours and 19.11% over seven days.
