According to Odaily, the upcoming European Union elections could bring significant changes to the cryptocurrency industry. The elections could result in key legislators losing their seats in the new 720-member parliament, leading to a period of uncertainty for the industry's policy agenda. Cryptocurrency experts are closely monitoring how lawmakers will handle the delicate balance between regulation and innovation.
Mark Foster, the EU policy head for the Crypto Council for Innovation, stated that while regulation is important and can play a role, it can also go too far and be seen as a hindrance. The cryptocurrency industry will be watching who will take on several key roles in the new parliament. For instance, the parliament's Economic and Monetary Affairs Committee has played a crucial role in amending and formulating cryptocurrency legislation over the past five years. It shaped the MiCA, representing the crypto asset regulatory market, and anti-money laundering rules.
Several pending legislative bills were not completed before the elections. These bills will require a rapporteur, or a chief negotiator appointed in parliament. The digital euro is a controversial proposal. If German European Parliament member Stefan Berger does not return to complete this process, the digital euro will also need a new parliamentary leader.
Other legislation related to payment services and financial data will also require new European Parliament members to lead. The Payment Services Regulation is crucial for determining whether issuers of fiat-backed stablecoins or electronic currency tokens need to comply with more burdensome measures than those proposed by MiCA.
The EU Commission will report on the progress of DeFi and NFTs and assess any risks they may pose to consumers and the market. The MiCA framework largely excludes these two areas of the crypto industry and focuses on service providers. Instead, the Commission will decide based on the investigation results whether additional legislation is needed. The report on DeFi and NFTs will be published in December, including insights from the European financial market and banking regulators.
The MiCA, which covers the licensing requirements for stablecoin issuers and crypto companies to protect the market and consumers, will begin to be implemented in stages from the end of June. According to the Digital Operational Resilience Act, from 2025, financial institutions, including crypto service providers, will also need to comply with enhanced IT security requirements.
The next leaders of the EU Commission will be nominated by EU member states and then elected by the European Parliament. This process will take place after the summer. The new EU Commission President (likely to be the current President Ursula von der Leyen) and the commissioners leading the financial and technology departments will be responsible for any new legislation that may affect cryptocurrencies or blockchain.