The European Securities and Markets Authority (ESMA) has explicitly identified the Maximum Extractable Value (MEV) as a clear example of illegal market abuse in its proposed technical standards for the Markets in Crypto-Assets (MiCA) Regulation.
Patrick Hansen, a prominent commentator on crypto regulation, recently highlighted this development on X, noting the significant implications it will have for the crypto industry.
MEV Regulation
According to Patrick Hansen, a crypto regulation commentator, on social media, the European Securities and Markets Authority (ESMA) draft explicitly mentions the maximum extractable value (MEV) issue. The draft states that miners or validators use their authority to arbitrarily reorder transactions, preemptively execute certain transactions and profit from them, and this behavior clearly constitutes a market abuse.