The bitcoin community in Europe and other parts of the world breathed a sigh of relief last week when the European lawmaker voted against the proposal to ban proof-of-work [PoW] cryptocurrencies. However, the decision isn’t final yet and could be challenged once again. This would put the PoW ban back on the table, which could have a direct implication on the bitcoin market.
Bitcoin and the PoW ban
Last week, the EU parliament’s economic committee approved the Markets in Crypto Assets [MiCA] proposal. However, it was the suggestions made by Member of European Parliament Stefan Berger that garnered the favor of others. His suggestion of including crypto assets, like other financial products, in the taxonomy area without requiring to ban proof-of-work cut it with the lawmakers. However, before it could be passed the bill will have to pass through several rounds of negotiations, which could mean the PoW and Bitcoin ban could also be discussed.
Berger explained to the people that the negotiating mandate can challenge the bill if a tenth of the MEPs, which will be 71 votes, were in favor. In case the ministers once again rallied against the bill, the granting of the trialogue could be pushed to April.
Berger further explained,
“If a majority of the plenary is against the trilogue mandate, #MiCA would be voted again by the plenary.
Problem: The last attempt to stop MiCA in its current form (without PoW) could be made here.”
Socialists and Democrats along with European Greens were likely to bring in new motions for PoW, which would put a question mark on Bitcoin’s status in the country. Berger noted,
“Groups like S& ;D / Greens are likely to bring in new motions to #PoW. Bitcoin ban would be back on the table. This would open Pandora’s box again. If S& ;D / Greens decide to challenge my trilogue mandate despite winning the committee vote, it would be fatal.”
With plenary sessions to be held on 23rd and 24th March, it would be crucial to see the negotiations that are underway. If one-tenth of the MEPs do challenge the bill, MiCA could also be dragged out by months. However, once again Bitcoin is awaiting a crucial decision, and traders were advised to secure their positions.