🔍 Venture capital firm Paradigm has penned a letter to the European Securities and Markets Authority (ESMA), suggesting a rethink on its approach to market abuse prevention in crypto. They argue ESMA's current stance draws an incorrect parallel between traditional finance and crypto activities. Paradigm believes ESMA needs a better understanding of Maximum Extractable Value (MEV), warning that the proposed regulation could hinder the development of tools that redistribute MEV proceeds back to users. Paradigm didn't offer a solution but urged ESMA to encourage industry to build products enhancing consumer welfare without dictating their design. 📝💡