The dire prospect of banning cryptocurrencies using Proof-of-Work (PoW) consensus, seeping into a key European digital asset directive, does not appear to have come to fruition.
March 24 was the last day the European Parliament could suspend further consideration of the current Markets for Cryptocurrency Assets (MiCA) project.
Proponents of a PoW-based digital asset ban have failed to garner enough support to challenge the current version of the bill, meaning MiCa will be safely considered in tripartite meetings between the European Parliament, the European Commission and the European Council.
On 21 March, Stefan Berger, the MEP tasked with submitting MiCA to the legislature, announced that the draft regulation had passed a specialized committee and received a mandate for consideration by tripartite meetings.
Berger also warned that the mandate could be challenged if one-tenth of all MEPs (71 members) vote against it, in which case a second round of voting in the April plenary session would be required. He called it the latest possible attempt to freeze the moderate version of MiCa, which does not include a controversial ban on proof-of-work (PoW) mining.
1/ MiCA➡️Diese Woche ist entscheidend für #PoW & #BTC!1. Ausschuss ist meinem Vorschlag (Taxonomie) gefolgt & hat Bericht angenommen (Ohne PoW-Ban) 2. Ich erhielt Verhandlungsmandat für Trilog mit Kommission & Rat 3. Nun muss Bericht in dieser Form durch Trilog gebracht werden — Stefan Berger (@DrStefanBerger) March 21 2022
MiCA is a regulatory framework containing 126 articles, as well as a detailed plan for their implementation by EU institutions and member states. The project was introduced by the European Commission back in 2020 as part of its digital finance strategy.
On the morning of March 25, Berger confirmed that MiCA had avoided a challenge in the EU Parliament and would move on to a trilateral review. He shared his optimism for the next steps in the process and mentioned that a proposal has been put forward to include cryptocurrency mining activities in the EU taxonomy.