For crypto fans in the European Union, the next 24 hours might be important (EU). Before moving on to the next round of discussions, parliamentarians established a mandate for the proposed groundbreaking legislation for digital assets.
The European Parliament’s proposal for efforts to limit the use of proof-of-work (PoW), an energy-intensive computing method, in the EU might yet put the planned Markets in Crypto Assets (MiCA) framework on hold. MiCA is the EU’s comprehensive crypto regulation package. Meanwhile, EU legislators are divided on which agency should execute MiCA.
Last week, the EU crypto community breathed a sigh of relief as a MiCA draft removed a disputed section that could have essentially outlawed bitcoin (BTC) due to energy concerns when it sailed through a parliamentary committee vote.
Although there are means to shift Ethereum to proof-of-stake, a less energy-intensive consensus process, crypto enthusiasts, like Hansen, claim that Bitcoin may not have the same choice. Proposing that Bitcoin be migrated out of PoW may have demonstrated how little politicians understand blockchain, according to critics of the proposed clause.
Meanwhile, although the contentious provision was nearly scrapped after last Monday’s vote, it was replaced with an alternative measure that would require the EU Commission, which is in charge of presenting new legislation in the EU, to come up with a proposal by 2025 to be included in the EU taxonomy on any crypto-asset mining activities that contribute significantly to climate change.