The Cardano Foundation has urged the European Union not to create specific rules for decentralized finance and staking. It argues that regulation should focus on the functions performed and financial risks rather than the technology used. It therefore distinguishes direct participation in decentralized networks, including delegating ADA tokens without surrendering control, from custody or staking services offered by intermediaries. The foundation warns that overlap between MiCA and existing financial law would create regulatory uncertainty. In September, the European Securities and Markets Authority had recommended additional safeguards for staking, lending and borrowing, along with a new regulated category for firms providing access to DeFi protocols.
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