According to BlockBeats, on June 28, Paradigm submitted an opinion to the European Securities and Markets Authority (ESMA) on the prevention of market abuse in the crypto asset sector. Paradigm emphasized that ESMA should avoid misapplying traditional financial market concepts to the underlying blockchain layer when dealing with Maximum Extractable Value (MEV), to prevent inconsistencies and unintended consequences.
Paradigm urged ESMA to deepen its understanding of MEV and support innovative tools to address potential abuse risks. At present, there is no universally accepted method to identify which activities related to MEV are harmful or suspicious. Therefore, requiring the ecosystem to monitor and prevent essentially subjective behaviors could lead to inconsistent applications and unexpected outcomes.