The Cardano Foundation submitted a 19-page response to the European Commission on September 30, urging the bloc to avoid creating separate rules for decentralized finance and staking. Instead, the organization argues that existing financial regulations should govern these activities based on their functions and associated risks, not the underlying technology.

In the submission, the foundation emphasized that regulatory focus should target the substance of an activity — what it does, the risks it creates, and the roles it plays — rather than the specific tools or platforms used. It highlighted that Cardano users can delegate their ADA tokens to support network security without relinquishing control of their assets, distinguishing this direct participation from services provided by intermediaries that involve custody or asset management.

The foundation also called for clearer boundaries between the EU’s Markets in Crypto Assets Regulation (MiCA) and broader financial legislation. It warned that overlapping requirements and divergent interpretations across member states could introduce legal uncertainty for crypto firms operating in Europe.

This stance aligns with broader EU regulatory scrutiny. In September, the European Securities and Markets Authority (ESMA) proposed enhanced oversight of staking, lending, and borrowing activities, along with plans to establish a new regulated category for firms offering access to decentralized finance (DeFi) protocols.

Beyond Europe, the Cardano Foundation has advocated for regulatory clarity in the United States. Alongside five other blockchain organizations, it submitted a joint letter in October urging the U.S. Securities and Exchange Commission to classify digital commodities as non-securities under its proposed crypto regulatory framework.

The submission reflects ongoing efforts by industry groups to shape policy through functional, risk-based approaches rather than technology-specific mandates.