EU Elections and the Future of Crypto Regulation

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In June, the EU will witness a significant electoral event as over 370 million eligible voters set out to elect 720 parliamentarians. This election is poised to play a crucial role in shaping the future of technology policy within the bloc, particularly concerning the rapidly evolving sectors of artificial intelligence (AI) and blockchain technology. Amidst these developments, the blockchain industry is making a concerted effort to establish its relevance and ensure that its potential is recognised in the EU’s digital transformation strategy.

Blockchain Industry’s Push Amidst AI Focus

As the EU shifts its tech policy focus towards AI, blockchain industry bodies are not standing by idly. Earlier this year, four prominent EU industry groups united to create a manifesto that champions the use of blockchain technology across the bloc. This initiative is timely, as the EU has already laid the groundwork with the world’s first comprehensive cryptocurrency regulations under the Markets in Crypto Assets (MiCA) framework, coupled with strict anti-money laundering protocols.

The manifesto emphasises the strategic importance of blockchain. It serves as the foundational layer that could integrate various technologies, such as AI, virtual reality, and robotics. Consequently, this integration fosters a robust digital economy. This call to action comes at a critical moment. Potential revisions to the MiCA regulation are on the horizon, alongside the uncertain political futures of its key architects. Therefore, these changes could dramatically impact the direction and pace of new policymaking in the crypto sector.

EU’s Upcoming Elections Threaten Blockchain Policy Progress

The upcoming elections introduce uncertainties that could affect the speed and nature of policy evolution in the crypto and blockchain sectors. The industry might lose key lawmakers who deeply understand these technologies, potentially leading to a slowdown in legislative development. Moreover, the focus on AI legislation by the EU presents a challenge for blockchain advocates to ensure the technology does not get sidelined in the broader tech policy discourse.

However, there are also opportunities. The industry groups’ manifesto aims to engage with the new parliament. They hope it will be more receptive and tech-savvy, especially if it includes younger members. Leaders like Robert Kopitsch, secretary-general of Blockchain for Europe, and Marina Markezic, co-founder of the European Crypto Initiative, view this as a chance. They aim to communicate better and promote the benefits of blockchain technology. This effort targets a new generation of legislators who are presumably more open to digital innovations.

As the political landscape evolves, the role of key figures such as Mairead McGuinness, the current commissioner for financial stability who oversaw the MiCA proposal, remains pivotal. McGuinness has indicated her openness to continue her term, though her future ultimately depends on the broader governmental decisions post-election. This highlights the intertwined nature of individual political careers and broader policy trajectories in the EU.

The EU elections determine the makeup of the next parliament. Also, set the stage for the future direction of digital policy, including the critical areas of blockchain and cryptocurrency.

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