EU Election Results: Impact on Crypto & Blockchain Regulation in European Parliament
Summary:
This report reviews the positions of different political parties in the European Union towards cryptocurrency and blockchain, following the recent election for the European Parliament. The parties have varied stances, with groups like the European People’s Party and Renew Europe Group advocating for balanced regulatory approaches that support growth and innovation, while others, like the Progressive Alliance of Socialists and Democrats and European Conservatives and Reformists Group, emphasize the need for stringent regulations. Overall, the future of blockchain and cryptocurrency regulation in the EU will be significantly influenced by the diverse composition of the newly elected European Parliament.
Between June 6th and 9th, over 185 million citizens across the European Union's 27 member states cast their votes for representatives to fulfill a five-year term in the new European Parliament. This legislative arm of the EU holds considerable influence over the direction the bloc will take over the next half-decade, including in the realms of crypto and blockchain. The election outcomes have varied; Christian Democrats secured ten additional seats, while Social Democrats retained strong presence, forfeiting only four seats. The market-friendly (and crypto-friendly) Renew Europe Group lost 23 seats, the Greens experienced a significant loss of 18 seats, while parties with far-right ideals made noticeable headway. As these parties ready for what's to come, what is their stance on the crypto and blockchain industries? For this, we turn to the election commitments of various parties and have engaged with several European Parliament members to better understand their future plans.
The European People’s Party (EPP), otherwise known as Christian Democrats, claimed the majority with 186 positions (an increase of 10). The EPP Group, renowned for its size and influence within the European Parliament, adopts a slightly reserved but progressive outlook when it comes to cryptocurrencies, digital euros, and blockchain technology. The group champions the transformative potential these digital advances hold for refining financial services and economies. However, the importance of robust regulations to prevent misuse, safeguard consumer interests, and preserve financial stability isn't overlooked either. Stefan Berger, MEP and EPP Group member who was instrumental in negotiating the EU’s principal crypto regulation, the Markets in Crypto-Assets (MiCA), stated that while crypto assets are generating significance and supplementing the traditional financial landscape, they require a balanced regulation stance that affords room for future growth and innovation.
Progressive Alliance of Socialists and Democrats (S&D), holding 135 seats (a decrease of 4), embraces blockchain and cryptocurrencies with caution. Although the group acknowledges these technologies' potential to foster financial inclusivity and enhance public services, it is also wary of their regulatory and societal implications. It insists on stringent regulation to prevent fraudulent activities, money laundering, and tax evasion, and supports the notion of a digital euro as beneficial to monetary policy effectiveness and consumer protection.
Renew Europe secured 79 seats (a decrease of 23). This centrist and liberal political group has been a key participant in the European debate on crypto. It has consistently advocated for a robust regulatory framework for crypto assets to ensure the EU is prepared for digital transformations. Renew Europe further encourages an innovation-friendly approach to blockchain and digital assets and views blockchain technology as a catalyst for transparency, efficiency, and growth across various sectors.
European Conservatives and Reformists Group (ECR) gained four seats, bringing their total to 73. Reflecting their broader conservative and reformist principles, the group adopts a practical and careful approach to cryptocurrency. In the ECR's view, blockchain and cryptocurrencies are promising tools for economic growth and modernization. However, the group urges strict anti-money laundering measures to tackle potential cryptocurrency misuse and robust cybersecurity measures to guard against threats. The group remains unsure about a digital euro, labeling it pointless and blaming the irresponsible monetary policy for the popularity and growth of cryptocurrencies.
Identity and Democracy (ID), with 58 seats (an increase of 9), comprises member parties with varying views on digital currencies and blockchain. The German AfD, for instance, is against the introduction of a digital euro by the European Central Bank, seeing it as a threat to cash that can infringe on individual freedom and privacy rights.
Greens/European Free Alliance (Greens/EFA), with 53 seats (a reduction of 18), have yet to formulate a comprehensive policy on cryptocurrencies or blockchain. They, however, support the principle of subsidiarity and the MiCA regulation. They advocate for regulations to protect investors while allowing them to opt for self-custody if they wish.
The Left in the European Parliament (GUE/NGL), with 36 seats (a decrease of 1), are critical of cryptocurrencies, raising concerns about their potential to facilitate illegal activities and exacerbate economic inequality. They believe crypto assets pose risks to financial stability and are an ecological disaster.
Non-Inscrits, with a total of 5 seats won, are Members of the European Parliament (MEPs) that do not belong to any recognized political group. They believe that cryptocurrencies are significant within the traditional financial system and advocate for protecting users’ digital rights while ensuring compliance with financial regulations.
European Christian Political Movement (ECPM), with four seats won, supports technological progress, provided it does not threaten human dignity and fundamental rights, such as the right to privacy and freedom of speech, and does not harm the environment.
Published At
6/11/2024 4:31:00 PM
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