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EU Parliament Gives Thumbs Down to Proof-of-Work Restriction

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The European Union Parliament quashed a proposal that would have restricted the utilization of proof-of-work cryptocurrencies and forced tokens to shift to greener mechanisms.

Source: Coindesk

BTC is down 0.10%, while ETH is down 0.18%.

The Economic and Monetary Affairs Committee on Monday decided to remove a key provision in the proposed cryptocurrency framework which would limit the use of proof-of-work cryptocurrencies in the 27 member states.

The proposal would also mandate the entire crypto space to comply with the European Union’s minimum environmental sustainability standards with respect to their consensus mechanism but was denounced by global crypto advocates.

The majority of the committee gave their thumbs up for a compromise that would involve the European Commission to provide alternative regulation, which would be presented to the European Parliament by January 2025.

Proof-of-work cryptocurrencies have been scrutinized across the globe due to concerns of energy consumption. A number of European stakeholders have warned that renewable energy could be used for cryptocurrencies instead of for national interests.

The draft will move to another round of negotiations between stakeholders, including the European Parliament, Commission, and council.

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