European Parliament votes on crypto law without PoW provision

The European Union parliament has scheduled a vote on a framework aimed at regulating cryptocurrencies after allaying concerns about proof-of-work mining.

In a Twitter thread from Monday, Stefan Berger, member of the European Parliament’s Economics Committee said the committee will vote on the Markets in Crypto Assets, or MiCA, framework on March 14 after submitting a final draft of the bill. As a rapporteur — the person appointed to report on proceedings related to the bill — Berger said the legislation will no longer contain text that some interpreted as potentially banning proof-of-work crypto mining.

“With MiCA, the EU can set global standards,” says Berger. “That is why all those involved are now being asked to support the submitted concept and vote for MiCA. Strong support for MiCA is a strong signal from the EU Parliament for a technology neutral and innovation-friendly financial sector.”

The rapporteur added that the regulation was intended to provide “legal certainty” and establish “trustworthy oversight structures” for crypto assets amid concerns about mining energy consumption. After the vote, however, the committee will discuss the bill with the European Council and the European Commission.

Related: EU Securities Regulator Calls for Proof-of-Work Crypto Mining Ban

First introduced to the European Commission in September 2020 and approved by the European Council in November 2021, the MiCA aimed to “create a regulatory framework for the crypto asset market that supports innovation and makes use of the potential of crypto assets that maintain financial stability and protect investors.” Berger postponed a committee vote on the bill originally scheduled for Feb. 28, citing the need to clarify “the issue of proof-of-work” in discussions with stakeholders.

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