EU Watchdog Says Reordering Blockchain Transactions Might Be Market Abuse. Industry Says It's Not
Summary
The European Union's markets regulator, ESMA, has raised concerns about Maximum Extractable Value (MEV) in blockchain transactions potentially constituting market abuse under the MiCA digital assets law. MEV involves blockchain operators reordering user transactions to maximize their profits, which can impact end-user profits and market integrity. While some argue that MEV can improve network efficiency, others worry about overregulation and seek clarity on what MEV scenarios constitute market abuse. ESMA's consultation on this matter is open for public feedback until June 25.
