EU Parliament Committee Votes Against Proof-of-Work Ban, Supports Alternative Amendment on Crypto Assets

EU Parliament Committee Votes Against Proof-of-Work Ban, Supports Alternative Amendment on Crypto Assets

European Parliament’s financial and financial affairs committee has voted in opposition to banning proof-of-work-based property for firms within the European Union. An various proposal on crypto property by European Parliament member Stefan Berger receives help as an alternative.

Committee Rejects Proof-of-Work Ban

The Committee on Economic and Monetary Affairs (ECON) voted on the proposed Markets in Crypto Assets (MiCA) framework Monday. The proposal features a de-facto ban on proof-of-work, a last-minute addition to the invoice.

According to Patrick Hansen, head of technique at Unstoppable Finance, the committee has voted in opposition to the proposed proof-of-work (POW) ban. He explained in a sequence of tweets Monday:

The ECON committee of the EU Parliament simply voted in opposition to the de-facto POW-ban … Big reduction & political success for the bitcoin & crypto group within the EU.

Overall, 23 voted in favor of the POW ban modification, 30 voted in opposition to, and 6 abstained, he added.

Unstoppable Finance tweeted: “We are relieved that the Parliament voted in opposition to the ban of proof-of-work-based property for EU firms.”

Prior to the vote, lawyer Jake Chervinsky famous that MiCA’s POW ban appears like “a pretext for a bitcoin ban.” He warned: “Make no mistake: in the event that they handle to ban POW, they’ll come for POS [proof-of-stake] subsequent, & each different Sybil resistance mechanism after that.”

Alternative Amendment on Crypto Assets Supported

Hansen added that an alternate modification from European Parliament member Stefan Berger obtained help as an alternative.

The modification reads: “By 1 January 2025, the Commission shall current to the European Parliament and to the Council, as applicable, a legislative proposal to amend Regulation (EU) 2020/852, in accordance with Article 10 of that Regulation, with a view to together with within the EU sustainable finance taxonomy any crypto asset mining actions that contribute considerably to local weather change mitigation and adaptation.”

Berger tweeted after the POW-ban votes that this can be a first-stage win for MiCA. He added that by accepting his proposal, EU parliament members have paved the way in which for future crypto regulation.

Regarding whether or not there are nonetheless any probabilities left for the proof-of-work ban, Hansen defined:

The teams that misplaced the vote have one final choice. They may veto a fast-track process of MiCA via the trilogues & convey the dialogue to the plenary of the Parliament. They want 1/10 of the votes of the EP to take action, which they’ve.

He famous: “Even outdoors of this MiCA regulation, the dialogue round POW regulation is way from over.”

What do you concentrate on the EU parliament committee voting in opposition to the proof-of-work ban? Let us know within the feedback part under.

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