EU Parliament Approves Crypto Legislative Package by Majority Vote – Decrypt

The European Parliament's Committee on Economic and Monetary Affairs (ECON) has approved the much-anticipated Markets in Crypto Assets Regulation (MiCA) legislative package, which aims to coordinate the EU's regulatory approach to the crypto industry.

After an earlier vote on Monday, the legislation does not include language about a proposed ban on proof-of-work mining, which was framed as a “de facto ban on Bitcoin.”

The legislation passed an ECON vote with a 31-23 majoritywith four abstentions.

One of the main priorities of the legislation is "to ensure that the regulatory framework for financial services in the EU is innovation-friendly and does not pose obstacles to the application of new technologies", according to the MiCA Packet Text. The package also targets four "overarching and related objectives", including achieving legal certainty for the industry.

“For crypto asset markets to develop within the EU, a strong legal framework is needed, clearly defining the regulatory treatment of all crypto assets that are not covered by existing financial services legislation,” the legislation says. Furthermore, MiCA aims to “support innovation”; “inculcate appropriate levels of consumer protection and market integrity” and “ensure financial stability”.

The final point on financial stability is also linked to the stable coin market. The authors of MiCA do not believe that the crypto market poses a threat to current financial stability, but believe that this could change soon due to stablecoins: "This may change with the advent of 'global stablecoins', which are seeking widespread adoption." broader by incorporating functions aimed at stabilizing their value by exploiting the network effects of the companies that promote these assets".

In some ways, the MiCA legislative package resembles President Biden's recent crypto executive order in the US: A call to action for various regulators and agencies to come together in a plan to regulate cryptocurrencies and protect consumers.

This is a developing story, please check back for updates.