European Parliament’s economic and monetary affairs committee has voted against banning proof-of-work-based assets for companies in the European Union. Stefan Berger of European Parliament supports a alternative proposal about crypto assets.
Committee rejects proof-of-work ban
Monday’s vote by the Committee on Economic and Monetary Affairs was on the Markets in Crypto Assets framework. As a final addition, the proposal contains a ban de facto on proof-of work.
Patrick Hansen (head of strategy, Unstoppable Finance) stated that the committee voted against Unstoppable Finance’s proposed proof-of work (POW), ban. He explainedA series of tweets on Monday
The ECON committee of the EU Parliament just voted against the de-facto POW-ban … Big relief & political success for the bitcoin & crypto community in the EU.
He added that 23 people voted for the amendment to POW ban, while 30 opposed it. Six others abstained.
Unstoppable Finance tweeted: “We are relieved that the Parliament voted against the ban of proof-of-work-based assets for EU companies.”
Prior to the vote, lawyer Jake Chervinsky noted that MiCA’s POW ban looks like “a pretext for a bitcoin ban.” He warned: “Make no mistake: if they manage to ban POW, they’ll come for POS [proof-of-stake] next, & every other Sybil resistance mechanism after that.”
Alternate Amendments to Crypto Assets
Hansen stated that Stefan Berger from the European Parliament was able to support an alternative amendment.
The amendment reads: “By 1 January 2025, the Commission shall present to the European Parliament and to the Council, as appropriate, a legislative proposal to amend Regulation (EU) 2020/852, in accordance with Article 10 of that Regulation, with a view to including in the EU sustainable finance taxonomy any crypto asset mining activities that contribute substantially to climate change mitigation and adaptation.”
Berger posted after the POW ban votes, claiming that it was a win for MiCA. Berger stated that EU Parliament members had accepted his proposal and paved the path for future cryptocurrency regulation.
Hansen answered the question of whether proof-of work bans are possible.
There is one more option for those groups who lost the vote. They could veto a fast-track procedure of MiCA through the trilogues & bring the discussion to the plenary of the Parliament. For them to do that, they will need 10% of the EP votes.
He noted: “Even outside of this MiCA regulation, the discussion around POW regulation is far from over.”
Let us know your thoughts on the EU parliament’s vote against the proof of work ban. Comment below.
Image creditShutterstock. Pixabay. Wiki Commons