From June 6 to 9, greater than 185 million individuals from the European Union’s 27 member states voted for candidates to serve a five-year time period in a brand new European Parliament, the legislative department of the political bloc.
This pivotal occasion will form the political course of the EU for 5 years, and crypto and blockchain aren’t any exception.
The election outcomes are combined: The Christian Democrats received 10 seats, whereas the Social Democrats held on, shedding solely 4 seats, and the pro-business (and pro-crypto) Renew Europe Group misplaced 23 seats.
The Greens additionally took a beating, shedding 18 seats, whereas far-right events made notable positive factors.
So, what plans do these events have for the crypto and blockchain industries?
Cointelegraph reviewed the election manifestos of assorted events and interviewed various members of the European Parliament about their plans for the longer term.
European Folks’s Occasion (EPP), or Christian Democrats — 186 seats (gained 10)
The EPP Group, the biggest and one of the influential political teams within the European Parliament, typically holds a cautious but forward-looking stance on cryptocurrencies, the digital euro and blockchain expertise.
The group acknowledges the transformative potential of blockchain and digital currencies in enhancing monetary companies and financial effectivity. Nonetheless, it emphasizes the necessity for sturdy regulatory frameworks to stop misuse, guarantee client safety and preserve monetary stability.
MEP Stefan Berger, a member of the EPP Group who helped negotiate the EU’s main crypto regulation — Markets in Crypto-Assets (MiCA) — advised Cointelegraph:
“Crypto belongings are gaining significance and have their place as a complement to the standard monetary system. We see crypto belongings as forward-looking applied sciences with numerous prospects for shoppers and companies and help balanced regulation that permits room for additional growth and innovation.”
The EPP helps the present MiCA legislation but additionally sees the potential for future changes. Berger stated, “MiCA creates belief within the trade, offers safety for founders and provides the European Financial Space a major aggressive benefit. It’s clear that sooner or later, we can even want a authorized framework for NFTs that advantages shoppers and the complete trade.”
The EPP helps a extra relaxed tax coverage for crypto. Berger stated the social gathering needs to “strengthen Europe as an innovation location and reject proscribing the adoption of crypto belongings by means of restrictive tax insurance policies.”
The social gathering can be eager to discover the potential of blockchain technology outside of crypto.
“Blockchain can carry effectivity positive factors in public administration processes and allow new purposes. This strengthens residents’ belief within the state and administration,” stated Berger.
Progressive Alliance of Socialists and Democrats (S&D) — 135 seats (misplaced 4)
The S&D Group is cautiously optimistic about blockchain and cryptocurrencies. The group recognizes the potential advantages of those applied sciences in selling monetary inclusion and enhancing public companies. Nonetheless, its main concern is the regulatory and social implications.
S&D requires strict guidelines to stop fraud, cash laundering and tax evasion. It helps the thought of a digital euro, seeing it as a software to extend the effectiveness of financial coverage and defend shoppers.
Renew Europe — 79 seats received (misplaced 23)
Renew Europe, a centrist and liberal political group, has been a outstanding voice within the European debate on crypto. The group held the rapporteurship for the report on digital finance, which the European Parliament permitted in 2020.
Since then, Renew Europe has persistently known as for a strong regulatory framework for crypto belongings to make sure the EU is prepared for structural digital transformations.
️“Digital finance, touches the lives of each EU citizen with out many people even realising it. The pandemic made Europeans go digital, now EU laws should catch up”, says @OKovarikMEP, Rapporteur of the report on #DigitalFinance #fintech
Extra: https://t.co/YHxpE6Hu1Q pic.twitter.com/P1Pxo15cig— Renew Europe (@RenewEurope) October 8, 2020
Renew Europe additionally champions a proactive, innovation-friendly method to blockchain and digital belongings. The social gathering views blockchain expertise as a key driver of transparency, effectivity and progress throughout numerous sectors.
The group supports creating and establishing a digital euro, which it sees as important for sustaining the European Union’s competitiveness within the digital age. Renew Europe describes the digital euro as “an bold challenge that ought to protect public cash as a financial anchor, strengthen Europe’s strategic autonomy within the funds sector and promote monetary inclusion.”
Moreover, Renew Europe strongly advocates for a European digital identification. The social gathering believes {that a} safe and universally recognized digital ID system will improve belief in digital transactions, streamline administrative processes and enhance entry to private and non-private companies.
European Conservatives and Reformists Group (ECR) — 73 seats (gained 4)
The ECR Group holds a realistic and cautious view on cryptocurrency, reflecting its broader conservative and reformist rules.
The group sees blockchain and cryptocurrencies as promising instruments for financial progress and modernization. In accordance with the ECR, these applied sciences might make Europe’s monetary sector extra aggressive and environment friendly, benefiting companies and shoppers alike. It believes cryptocurrencies ought to be built-in into a various monetary ecosystem and help the MiCA regulation
Nonetheless, the ECR helps stringent Anti-Money Laundering measures to fight the misuse of cryptocurrencies. It additionally requires sturdy cybersecurity measures to defend towards hacking and different threats.
The ECR is skeptical a couple of digital euro, calling it “an answer in search of an issue” and attributing the recognition and rise of cryptocurrencies to what it describes as irresponsible financial coverage.
The group argues that present options, resembling immediate funds, already supply the advantages touted by proponents of a digital euro with out the related dangers or problems.
Id and Democracy (ID) — 58 seats (gained 9)
Whereas the ID Group, recognized for its populist and nationalist tendencies, does not have an official stance on digital currencies and blockchain, member events resembling Germany’s Different for Germany (AfD) have some ideas, not less than on a digital euro.
The AfD sees the euro as essentially flawed and unable to maintain a union of 20 numerous economies. The social gathering thinks that euro bailouts, typically at Germany’s expense, are additional proof of its structural inadequacy.
The AfD opposes the introduction of a digital euro by the European Central Financial institution. The social gathering sees it as a risk to money, which is crucial to defending particular person freedom and privateness from authorities overreach and surveillance. The social gathering advocates for the preservation of money as a constitutional proper, fearing {that a} digital euro might undermine this elementary liberty.
In distinction, Marine Le Pen of France’s Nationwide Rally (additionally a member social gathering of the ID Group) has softened her stance regardless of a historical past of skepticism towards cryptocurrencies.
After initially calling for a ban on Bitcoin (BTC) in 2016, Le Pen now supports strict regulation rather than an outright endorsement of crypto or blockchain expertise.
Greens/European Free Alliance (Greens/EFA) — 53 seats (misplaced 18)
The Greens/EFA Group has no overarching coverage on cryptocurrencies or blockchain.
Paul Butcher, an EFA coverage adviser, defined to Cointelegraph: “As a European political social gathering, we’re an alliance of our member events, which have completely different views on the topic or haven’t developed insurance policies on the sector. Because of this, we now have not but mentioned this concern at our Basic Assemblies or on the EFA Congress, the place our 2024 manifesto was developed.”
Nonetheless, the EFA helps the precept of subsidiarity and the MiCA regulation. Butcher stated the social gathering welcomes MiCA “as a place to begin for a European-wide regulatory framework on crypto belongings, which by their nature cross borders and can’t be adequately regulated on the nationwide or regional degree alone.”
“Nonetheless, in the case of taxation and particular measures to advertise the sector, we search to safeguard the best of the member states and areas to legislate in these areas.”
The EFA additionally acknowledges the potential of crypto belongings to offer people better freedom and possession over their monetary affairs. Butcher added: “We help this competitors within the conventional banking sector and wish to see it develop in step with acceptable laws to make sure that traders are protected whereas nonetheless with the ability to select self-custody in the event that they so want.”
The Greens/EFA Group takes a cautious and socially acutely aware stance on blockchain. It acknowledges its potential for enhancing transparency and sustainability in numerous sectors, resembling provide chain administration and vitality.
Nonetheless, it’s cautious of the environmental impression of sure cryptocurrencies, significantly these counting on energy-intensive consensus mechanisms, resembling proof-of-work.
The Greens/EFA Group helps exploring a digital euro, offered it aligns with sustainability targets and contributes to social welfare.
The Left within the European Parliament (GUE/NGL) — 36 seats (misplaced 1)
The Left is vital of cryptocurrencies, expressing considerations over their potential to facilitate illicit actions and exacerbate financial inequality. It’s cautious of the speculative nature of cryptocurrencies and the dangers they pose to monetary stability.
In accordance with the Left, “crypto belongings are an ecological catastrophe.” The German Left social gathering’s election manifesto calls for banning Bitcoin and crypto mining to save lots of vitality.
The “Wild West” that’s Crypto-Belongings should be regulated. Any identifiable use, that crypto-assets might need by way of effectivity and technological innovation, MUST be put to make use of within the design of public cash such because the Digital Euro. pic.twitter.com/MmzGBNZ1Ch
— Chris MacManus MEP (@MacManusChris) April 19, 2023
MEP Chris MacManus (Eire) stated he had “little interest in making a marketplace for or in fostering the usage of crypto belongings,” including that “at their worst, they’re pyramid schemes, or utilized by prison gangs for cash laundering, or defrauding working individuals, they usually can waste big quantities of vitality for no objective.”
“I see little or no social or financial profit to those instruments of hypothesis. I settle for the fact that crypto belongings exist, and wanting banning them, they should be regulated.”
The Left helps a digital euro designed to reinforce public management over the financial system and promote financial justice. It advocates for strict regulatory measures to curb hypothesis, defend shoppers and guarantee digital monetary improvements serve the broader public curiosity.
Non-Inscrits
Non-Inscrits are MEPs who don’t belong to one of many acknowledged political teams listed above.
Volt Europa — 5 seats received (plans to affix Renew in EU Parliament)
Volt Europe, a pro-European federalist social gathering targeted on innovation and digital rights, holds a progressive stance on cryptocurrencies.
It believes cryptocurrencies are vital inside the conventional monetary system and advocates for shielding customers’ digital rights whereas guaranteeing compliance with monetary laws. Pauline Raabe, who handles public relations for Volt Europe, advised Cointelegraph:
“Cryptocurrencies are already intertwined with the standard monetary system, as evidenced by the latest emergence of Bitcoin [exchange-traded funds]. As such, it’s an asset class that’s right here to remain, and due to this fact, our fundamental concern is its impression on society and the financial system.”
Volt helps the introduction of a digital euro with out limits and with remuneration to foster competitors available in the market for deposits and cost companies. Its method to regulation, together with MiCA, emphasizes the necessity for readability and consistency throughout the EU to keep away from pointless crimson tape for traders and firms.
Relating to taxation, Volt proposes treating crypto investments like some other investments. It goals to harmonize European funding regulation to create an built-in marketplace for monetary investments. As a part of this harmonization effort, the social gathering helps the creation of mutual funds and exchange-traded funds with crypto assets.
Relating to blockchain expertise, Volt sees its potential purposes in digital identities, e-health and certificates diffusion. It advocates for additional analysis and growth to advance the cryptographic foundations of blockchains and help progressive corporations exploring their real-world purposes.
“Volt needs to triple the funds of the Horizon Europe program. To facilitate progressive startups, Volt strives to determine a full-scale European enterprise program and to help entrepreneurs in becoming into the regulatory framework of the EU by, for instance, creating regulatory sandboxes.”
European Christian Political Motion (ECPM) — 4 seats received
In accordance with Adriana Rus, the ECPM’s communications supervisor, the social gathering typically helps technological progress so long as it “doesn’t threaten human dignity and elementary rights, resembling the best to privateness and freedom of speech, and the surroundings just isn’t harmed.”
Some ECPM members are particularly critical of initiatives just like the European digital pockets and eID, believing they compromise privateness and anonymity. Nonetheless, past these considerations, the ECPM has not established an in depth coverage on cryptocurrencies.
Balancing innovation with regulatory oversight
The newly elected European Parliament will considerably affect the way forward for cryptocurrency and blockchain expertise within the EU. Every political group has a distinct perspective: The EPP Group favors balanced regulation to help progress and innovation, whereas the S&D Group prioritizes strict guidelines to stop misuse and helps the event of a digital euro. Renew Europe advocates for a proactive stance on digital belongings, pushing for a digital euro and a European digital identification.
Given the Parliament’s numerous composition, debates and potential changes to frameworks like MiCA are anticipated. The presence of far-right and conservative events provides complexity, with some skeptical of the digital euro and prioritizing stringent Anti-Cash Laundering measures. In the meantime, smaller teams just like the Greens and the Left emphasize environmental considerations and social justice in digital finance.
Dislcaimer: The European elections are nonetheless ongoing in Eire, however a lot of the outcomes are in and have been counted. Figures could also be topic to some change.
