The Cardano Foundation opposed a separate European Union regulatory approach targeting decentralised finance and staking. In a submission to the European Commission, it argued that existing financial laws should be applied based on the function and risks of activities, rather than the underlying technology. It said regulators should distinguish direct participation in decentralised networks from intermediary financial services that hold or control users’ assets, and warned that overlapping rules and differing national interpretations could increase uncertainty for crypto firms.

European Union finance ministers have agreed in principle to transfer oversight of major crypto firms from national regulators to the European Securities and Markets Authority, aiming to close supervisory gaps created by MiCA’s passporting system. The Council agreed on a negotiating position, but legislation is not final and still requires talks with the European Parliament. Under the compromise, ESMA would directly supervise an estimated 10 to 15 firms and gain powers including inspections, investigations and fines.