European lawmakers efficiently voted in opposition to 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 Belongings (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 go the PoW ban can contest its elimination, and provoke one other vote on the ban if they’ve a minimum of 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 throughout the EU parliament’s subsequent plenary session in April.
If a majority of the plenary is in opposition to the trilogue mandate, #MiCA could be voted once more by the plenary. Drawback: The final try to 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’ll select to veto the MiCA invoice.
That might convey the dialogue round POW into the high-level coverage area. As we are able to’t predict how that will play out, it ought to be prevented. Even when it doesn’t change the vote on POW, it might unnecessarily delay the regulation for a minimum of a few months.
-Patrick Hansen
PoW ban extensively criticized by the crypto neighborhood
An preliminary vote on the MiCA invoice in February was postponed after the crypto neighborhood 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 price of Bitcoin and Ethereum mining, which may 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 enable for extra environment friendly mining. A number of EU ministers additionally stated that the PoW ban would vastly impair the EU’s adoption of crypto and web3.
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