Sebastian Sinclair

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 <ul>
 <li>A controverial section of the EU&#8217;s crypto draft bill has been voted down by the bloc&#8217;s economic committee</li>
 <li>Voting witnessed 23 votes in favor to 30 votes against, with a further six abstaining</li>
 </ul>
 
</div>



The EU Committee on Economic and Monetary Affairs (ECON) has voted against the implementation of a controversial clause that <a href="https://cms.blockworks.co/eus-crypto-bill-mica-heads-to-a-monday-vote-without-proof-of-work-ban/" target="_blank" rel="noreferrer noopener">some say possessed teeth</a> to effectively ban proof-of-work coins, including bitcoin.



ECON&#8217;s <a href="https://www.europarl.europa.eu/cmsdata/245802/ECON%20VS%2014%20March%202022%20(amendments)%20RESULTS%20(002).pdf" target="_blank" rel="noreferrer noopener">voting session</a> on Monday witnessed 23 votes in favor of the <a href="https://cms.blockworks.co/eus-crypto-bill-mica-heads-to-a-monday-vote-without-proof-of-work-ban/" target="_blank" rel="noreferrer noopener">Markets in Crypto Assets</a> (MiCA) draft legislation&#8217;s clause to 30 votes against, with a further six abstaining.



Specifically, the clause sought to subject the use of the crypto industry&#8217;s <a href="https://cms.blockworks.co/proof-of-work-vs-proof-of-stake-whats-the-difference/" target="_blank" rel="noreferrer noopener">proof-of-work</a>-based digital assets to &#8220;minimum environmental sustainability standards.&#8221; 



Language in the bill also included a measure to &#8220;set up and maintain a phased rollout plan to ensure compliance with such requirements.&#8221; 



The wording was a revision to the bill which previously sought to establish a framework prohibiting crypto services from utilizing proof-of-work-based cryptos altogether.



Some, including Unstoppable Finance’s head of growth Patrick Hansen, viewed the language, including its revised wording, as &#8220;essentially the same&#8221; as a ban on bitcoin.



Lawmakers across the continent have been pushing for regulation on crypto mining, concerned proof-of-work is an energy-intensive crypto activity deemed &#8220;unsustainable&#8221; in light of the legislation&#8217;s aims.



Introduced in 2020, MiCA seeks to tighten regulation around digital assets by establishing a licensing regime on the continent and streamlining a uniform set of rules for the bloc&#8217;s 27 member states.



MiCA is part of the EU&#8217;s Digital Finance package that is attempting to &#8220;further enable and support the potential of digital finance in terms of innovation and competition while mitigating the risks.&#8221;



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