The European Union's elections have begun, and the outcome is expected to have significant implications for the regulatory framework of Bitcoin and cryptocurrencies. The elections, which started on June 6 and are expected to conclude by June 9, will determine the composition of the European Parliament for the next five years. This parliament will play a crucial role in shaping the EU's regulatory landscape, particularly with regards to the implementation of the Markets in Crypto Assets (MiCA) legislation.
MiCA, which is set to kick in as the elections take place, is a landmark piece of legislation that aims to establish a comprehensive regulatory framework for digital assets in the EU. The legislation includes rules for stablecoins, which are expected to come into effect on June 30. While the new parliament is unlikely to make immediate changes to MiCA, they do have the power to request reports from the European Commission regarding potential amendments to the legislation. This could potentially lead to modifications in MiCA through consensus between the Parliament, the Council, and the Commission.
The crypto industry is closely watching the elections, as the outcome will significantly impact the regulatory environment for digital assets. The industry has historically relied on allies within the European Parliament, such as Lídia Pereira from the European People's Party and Ondřej Kovařík from Renew Europe, to push for pro-crypto regulations. Pereira, a young Portuguese MEP from the center-right, has been a vocal supporter of digital technologies, particularly blockchain. Kovařík, a Czech MEP, has also been an active proponent of crypto-related policies.
Industry experts are optimistic about the incoming MEPs, anticipating a larger number of representatives who might be more receptive to new technologies. Both Robert Kopitsch, Secretary General of Blockchain for Europe, and Tommaso Astazi, Head of Regulatory Affairs at Blockchain for Europe, believe that the presence of younger MEPs could lead to a more tech-friendly European Parliament.
The elections will also influence the selection of the new European Commission, which is expected to be chosen by October. The new commissioners will set their priorities by the end of the year, and their stance on crypto will be crucial in shaping the EU's regulatory environment. The crypto industry is hopeful that the next set of commissioners will be more supportive of digital assets and blockchain technology.
In summary, the European Parliament elections, which coincide with the implementation of MiCA, are expected to have significant implications for the regulatory framework of Bitcoin and cryptocurrencies. While the new parliament is unlikely to make immediate changes to MiCA, they do have the power to request reports from the European Commission, potentially leading to modifications in the legislation. The crypto industry is closely watching the elections, hoping for a more supportive regulatory environment in the future.
