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【Cardano Foundation urges the EU not to extend MiCA rules to DeFi and staking】Cardano Foundation urges the EU not to introduce new standalone regulatory rules for DeFi and staking, arguing that existing financial laws should regulate based on the function and risks of an activity rather than the technology used. In a blog post published on Wednesday, the foundation outlined its September 30-page submission to the European Commission, 19 calling for a distinction between direct participation in decentralized networks and financial services provided by intermediaries, especially services involving custody or control of user assets. The foundation said regulation should follow the substance of the activity, the functions performed, and the risks created, rather than the technology on which the activity relies. The foundation noted that Cardano users can delegate native ADA tokens to help secure the network without relinquishing custody or locking up tokens, and that this form of direct participation should be treated differently from intermediary-operated staking services. The submission also called for a clearer distinction between EU MiCA regulation and existing financial laws, warning that overlapping regulatory requirements and inconsistent interpretations across member states could create uncertainty for crypto businesses. The move comes as EU regulators consider expanding oversight of crypto services.September the European Securities and Markets Authority proposed additional safeguards for staking and lending activities, as well as a new regulated service category for companies that provide DeFi protocol access. In addition, the Cardano Foundation also, on October 20 jointly sent a letter with five other blockchain organizations to the U.S. Securities and Exchange Commission, urging it to formally recognize digital commodities as non-securities under the proposed crypto framework.