Paradigm: European regulators need a deeper understanding of MEV

ChainCatcher news, according to Cointelegraph, Paradigm has submitted comments to the European Securities and Markets Authority (ESMA) regarding the prevention of market abuse in the crypto asset market. It pointed out that ESMA should avoid misapplying concepts from traditional financial markets to the foundational blockchain layer when dealing with Maximal Extractable Value (MEV) to prevent inconsistencies and unintended consequences.

Paradigm calls for ESMA to gain a deeper understanding of MEV and supports innovative tools to address potential abuse risks. "Currently, there is no universally accepted method to identify which activities related to MEV are harmful or suspicious, and thus requiring the ecosystem to monitor and prevent inherently subjective behaviors may lead to inconsistent applications and unexpected outcomes."