- The Cardano Foundation has raised concerns over the EU crypto policies, calling for greater clarity.
- ADA whales continue to accumulate, holding about 67.47% of the total supply despite a bearish outlook.
The EU has, in recent months, recognized the growing influence of cryptocurrencies and has been working out regulations around them. The Cardano Foundation says that the current policies are hard to apply in practice. In a newly released report, the Foundation calls for clearer guidance on the EU’s crypto policies.
The report, dubbed DARTE or Digital Assets Regulation and Token Economy, is a series of expert-led roundtables, comprising regulators, industry experts, legal experts, and policymakers.
In its assessment of the EU’s policies, the Cardano team has identified fragmentation, causing tension between the framework as it is written on paper and its practical use across different jurisdictions.
Cardano Calls for the EU to Promote Growth
The Paris 2.0 DARTE session, which took place on April 14th, looked at three key policies adopted by the EU. The Markets in Crypto-Assets Regulation (MiCA), the Digital Operational Resilience Act (DORA), and the Anti-Money Laundering framework, which will start applying next year, with extended KYC and AML obligations. These regulations have both hindered industry growth and also been exploited by some firms.
The report called on the EU to apply the same crypto rules across all countries to prevent companies from exploiting certain regions with weaker rules.
The Foundation says it’s even more critical that the EU first sets basic rules for stablecoins before developing more complex regulations for other crypto-related products. The Foundation further advised that the EU should avoid overcomplicating compliance requirements, making it impractical for firms to expand into the region.
Is The EU Sabotaging Crypto?
If the EU does not adopt these changes, it risks being left behind the U.S. The U.S. administration is working hard to make the U.S. the “crypto capital of the world,” as President Trump previously stated. The country has already passed the GENIUS Act, announced a strategic national reserve, and rescinded restrictive SEC guidelines. As ETHNews reported, the CLARITY Act could be passed on Thursday with overwhelming support.
But the EU could be deliberately frustrating the crypto industry, as it is more focused on a digital euro, a proposed central bank digital currency (CBDC). If the CBDC is approved, issuance is expected as soon as 2029.
The block is also working on Digital Product Passports and Digital Identity initiatives. The DPP will enable tracking of all products and enforce sustainability programs. Digital IDs, on the other hand, have been promoted as a means for users to access online and offline public and private services, store and share digital documents, and create binding signatures. Cardano is positioning itself as a blockchain infrastructure to fulfil these goals, with the EU expected to work with public blockchains.
At the time of writing, Cardano’s ADA coin is trading at $0.2647, after a 3% slip in the last 24 hours. Santiment Intelligence has revealed that, despite a bearish outlook, ADA whales continue to accumulate. ADA holders with at least 1 million coins have been increasing their holdings and now have 25.09B ADA, approximately 67.47% of the supply.
