The European Parliament’s Committee on Economic and Monetary Affairs (ECON) adopted its negotiating position on new rules for crypto-assets by 31 votes to 4 with 23 abstentions on Monday 14 March.
The Directive aims to establish a uniform legal framework for crypto-assets in the EU, protect consumers and combat market manipulation and financial crime.
The compromise position adopted is ultimately less ambitious than the one that had been informally agreed beforehand. Originally scheduled for Monday 28 February, the vote was postponed by the rapporteur himself, Stefan Berger (EPP, Germany) (see EUROPE 12900/23).
The S&D, The Left and Greens/EFA Groups wanted to amend the text to include environmental sustainability standards for crypto mining and to ban, from 2025, after a transition period, the trading of crypto-assets based on unsustainable mechanisms, including the ‘proof of work’ on which bitcoin is based.
The Greens/EFA Group had threatened not to support the text if the environmental impact was not taken into account. In the end, the S&D, Greens/EFA and The Left Groups abstained.
Fearing that bitcoin would be banned in Europe, MEPs instead turned to taxonomy, asking the Commission to come up with a legislative proposal to include any cryptocurrency mining activity that contributes substantially to climate change by 1 January 2025.
“I am happy about the clear signal sent by the ECON Committee. Banning ‘proof of work’ would have meant for the EU to become a crypto ‘no man’s land’. If we want to foster innovation, we should be open to new technologies, not banning them”, welcomed Germany’s Markus Ferber, EPP Group spokesman in the ECON Committee, in a statement.
A solution that does not suit the S&D (see EUROPE 12909/18): “Our Group is really disappointed about the lack of any ambition in the field of sustainability. The principles set in this respect by the report are very weak and completely negate the reality”, lamented Eero Heinäluoma (S&D, Finland), shadow rapporteur.
He added: “I regret that the Commission did not address this massive carbon footprint in its original proposal. [...] Unfortunately, the conservative rapporteur then seems to have caved in to pressure from lobbyists and industry, making a complete U-turn in 48 hours and throwing the deal in the bin, which he himself had agreed upon and had described as very good. The alternative text he pushed through today - with the support of the far right - is complete window-dressing, leaving the catastrophic consequences of the growing energy appetite of this growing industry unanswered”.
MEPs also decided, by 33 votes to 25, to open the way for inter-institutional negotiations (trilogue). The EU Council had approved its negotiating position in December 2021 (see EUROPE 12845/25). (Original version in French by Anne Damiani)