The European Parliament’s Commission for Economic Policy (ECON) voted against a proof-of-work (PoW) ban on cryptocurrency mining – 32 members voted against, four individuals abstained, and 24 voted in favor of it. The Markets in Crypto Assets Regulation (MiCA) legislative package has been passed.
The legislation will make sure that the EU financial services regulatory framework is innovation-friendly and does not pose hurdles to the application of new technologies. It will work to achieve legal certainty for the industry. The legislation says that there is a need for a sound legal framework clearly defining the regulatory treatment of all crypto assets not covered under the existing financial services legislation.
MiCA supports innovation, instills appropriate levels of consumer protection and market integrity, and ensures financial stability. Authors of the legislature do not regard the crypto market as a threat to financial stability. They believe that stable coins would drive a change. The legislature says that global stable coins seek wider adoption by integrating features aimed at stabilizing their value. It exploits the network effects from the firms promoting digital assets.
The European Union highlighted that MiCA aims to harmonize the European framework for the issuance and trading of various types of cryptocurrencies. The regulation wants an underlying legal framework for assets, markets and service providers.
Analysts say the PoW ban in Europe could return. The members who voted against it can veto the fast-track MiCA and push the discussion to the European Parliament. And to achieve this, they need 1/10 of the EP votes they have. It means that the discussion surrounding PoW will go into the high-level policy arena.