European Parliament’s economic and monetary affairs committee has voted against banning proof-of-work-based assets for companies in the European Union. An alternative proposal on crypto assets by European Parliament member Stefan Berger receives support instead.
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 includes a de-facto ban on proof-of-work, a last-minute addition to the bill.
According to Patrick Hansen, head of strategy at Unstoppable Finance, the committee has voted against the proposed proof-of-work (POW) ban. He explained in a series of tweets 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.
Overall, 23 voted in favor of the POW ban amendment, 30 voted against, and six abstained, he added.
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.”
Alternative Amendment on Crypto Assets Supported
Hansen added that an alternative amendment from European Parliament member Stefan Berger received support instead.
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 tweeted after the POW-ban votes that this is a first-stage win for MiCA. He added that by accepting his proposal, EU parliament members have paved the way for future crypto regulation.
Regarding whether there are still any chances left for the proof-of-work ban, Hansen explained:
The groups that lost the vote have one last option. They could veto a fast-track procedure of MiCA through the trilogues & bring the discussion to the plenary of the Parliament. They need 1/10 of the votes of the EP to do so, which they have.
He noted: “Even outside of this MiCA regulation, the discussion around POW regulation is far from over.”
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