European lawmakers efficiently voted towards a proposed ban on proof-of-work (PoW) cryptocurrencies final week. However as per regional regulation, the proposal may very well be revived this week to face a second spherical of voting.
PoW ban may very well be reintroduced
After being approved by the EU Parliament’s economic committee last week, the Markets In Crypto Property (MiCA) proposal will now be topic to negotiations within the parliament, earlier than it’s handed. However it’s in these negotiations that the PoW ban may very well be reintroduced.
Particularly, the events that had sought to move the PoW ban can contest its removing, and provoke one other vote on the ban if they’ve at the very least one-tenth of European parliament members on their facet, MiCA’s rapporteur Stefan Berger defined in a tweet.
The events have till Wednesday, March 23, to veto the proposal, and in the event that they do, the PoW ban should be voted on once more through the EU parliament’s subsequent plenary session in April.
If a majority of the plenary is towards the trilogue mandate, #MiCA could be voted once more by the plenary. Downside: The final try and cease MiCA in its present kind (with out PoW) may very well be made right here.
And in keeping with Patrick Hansen, Head of Technique at Unstoppable Finance, the events in favor of the PoW ban have already got the required votes. It’s now a query of whether or not they may select to veto the MiCA invoice.
That will deliver the dialogue round POW into the high-level coverage area. As we will’t predict how that may play out, it ought to be prevented. Even when it doesn’t change the vote on POW, it could unnecessarily delay the regulation for at the very least a few months.
-Patrick Hansen
PoW ban extensively criticized by the crypto group
An preliminary vote on the MiCA invoice in February was postponed after the crypto group decried the supposed PoW ban. Whereas the ban was then dropped forward of a vote final week, it was added in at the last moment.
The important thing motivation behind the PoW ban is the excessive power value of Bitcoin and Ethereum mining, which might rack up a big carbon footprint.
However crypto proponents argue that this considering ignores a shift to renewable power by a bulk of crypto miners, in addition to advances in know-how that permit for extra environment friendly mining. A number of EU ministers additionally stated that the PoW ban would significantly impair the EU’s adoption of crypto and web3.
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