Crypto Groups Seek Regulatory Clarity on Miner Transaction Reordering and Potential for Abuse
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ESMA flagged a technique called maximum extractable value (MEV) as potential market abuse in crypto asset regulations
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MEV involves miners reordering transactions to maximize profits, which some see as an "invisible tax" on users
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Industry advocates argue MEV can improve network efficiency and should not always be seen as abusive
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There are questions around whether MEV is in scope of the regulations and if it inherently undermines market integrity
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Crypto groups seek more clarity from regulators on what specific MEV scenarios constitute market abuse