• EU lawmakers rejected the proposed ban of cryptocurrencies that use the Proof-of-Work mechanism
• The proposal, which has been a scorching debate in current days, would have led to the outlawing of Bitcoin and different PoW cryptocurrency tasks

Today, the European Parliament Committee on Economic and Monetary affairs voted on the proposed draft suggesting the ban of cryptocurrencies leveraging the Proof-of-Work consensus mechanism. The proposal, which might have compelled PoW cryptocurrencies to shift to sustainable mechanisms, did not get sufficient backing in the course of the vote and was consequently rejected.

The majority of EU parliamentarians voted towards together with the supply out of a draft of the Markets in Crypto Assets (MiCA)framework. Patrick Hansen was among the many first to share information on Twitter.

“The ECON committee of the EU Parliament just voted against the de-facto POW-ban: 32 against, 24 in favor. Big relief & political success for the bitcoin & crypto community in the EU […] A majority of MEPs from the EPP [European People’s Party], ECR [European Conservatives and Reformists], Renew [Renew Europe] & ID [Identity and Democracy] voted against it, while a minority of MEPs from Greens, S&D [Socialists and Democrats], and GUE [Left in the European Parliament] mainly voted in favor,” Hansen, who’s the Head of Strategy & Business Development at Unstoppable, wrote.

A ‘compromise’ will do for the time being

Hansen additional said that an ‘different modification from Stefan Berger was supported.’ The ‘compromise’ that was arrived at states, “By 1 January 2025, the Commission shall present to the European Parliament and to the Council, as appropriate, a legislative proposal to amend Regulation (EU) 2020/852, in accordance with Article 10 of that Regulation, with a view to including in the EU sustainable finance taxonomy any cryptoasset mining activities that contribute substantially to climate change mitigation and adaptation.”

The two main cryptocurrencies, Bitcoin and Ethereum, use PoW mechanisms, however the latter is at the moment transitioning to a Proof-of-Stake mechanism. Until final week when the proposal to limit using PoW cryptocurrencies was included within the MiCA draft, it appeared unlikely that Bitcoin would swap to PoS.

While the supply to pressure the shift was quashed at the moment, it introduced Bitcoin’s ‘unsustainable’ mechanism to the dialogue desk. Champions of environmentally pleasant initiatives will probably proceed protecting tabs on the topic.