The recent European elections have significantly impacted the crypto and blockchain sectors, with various political parties adopting diverse stances on regulation, innovation, and the future of digital assets.
The European elections, held from June 6 to 9, saw over 185 million people from the EU’s 27 member states vote to shape the political direction of the European Parliament for the next five years. This pivotal event has significant implications for the crypto and blockchain industries. Here’s a detailed look at the positions of different political groups and their plans for these technologies.
European People’s Party (EPP): 186 Seats (Gained 10)
The EPP Group, the largest in the European Parliament, adopts a cautious yet forward-looking stance on cryptocurrencies and blockchain. The group recognizes the transformative potential of these technologies in enhancing financial services and economic efficiency but emphasizes the need for robust regulatory frameworks. MEP Stefan Berger, involved in negotiating the EU’s major crypto regulation, Markets in Crypto-Assets (MiCA), highlighted the group’s support for balanced regulation to foster trust and innovation. The EPP also advocates for a more relaxed tax policy for crypto to strengthen Europe’s innovation landscape and supports exploring blockchain applications in public administration.
Progressive Alliance of Socialists and Democrats (S&D): 135 Seats (Lost 4)
The S&D Group is cautiously optimistic about blockchain and cryptocurrencies, recognizing their potential in promoting financial inclusion and improving public services. However, they stress strict regulations to prevent fraud, money laundering, and tax evasion. The S&D supports the development of a digital euro, viewing it as a tool to enhance monetary policy effectiveness and consumer protection.
Renew Europe: 79 Seats (Lost 23)
Renew Europe, a centrist and liberal group, is a prominent advocate for robust regulatory frameworks for crypto assets to prepare the EU for digital transformations. They champion a proactive, innovation-friendly approach to blockchain and digital assets, viewing blockchain as a key driver of transparency and growth. The group supports the development of a digital euro to maintain the EU’s competitiveness and advocates for a European digital identity to enhance trust in digital transactions.
European Conservatives and Reformists Group (ECR): 73 Seats (Gained 4)
The ECR Group holds a pragmatic and cautious view on cryptocurrencies, seeing them as tools for economic growth and modernization. They support integrating cryptocurrencies into a diverse financial ecosystem and back the MiCA regulation. However, the ECR calls for stringent anti-money laundering measures and robust cybersecurity. They are skeptical about a digital euro, viewing it as unnecessary given existing solutions like instant payments.
Identity and Democracy (ID): 58 Seats (Gained 9)
The ID Group, known for its populist and nationalist tendencies, lacks an official stance on digital currencies and blockchain. However, member parties like Germany’s AfD oppose a digital euro, seeing it as a threat to cash and individual freedom. In contrast, Marine Le Pen of France’s National Rally has shifted from opposing to supporting strict regulation of cryptocurrencies.
Greens/European Free Alliance (Greens/EFA): 53 Seats (Lost 18)
The Greens/EFA Group takes a cautious approach to cryptocurrencies and blockchain. While they acknowledge the potential for enhancing transparency and sustainability, they are wary of the environmental impact of energy-intensive consensus mechanisms. The Greens and EFA support exploring a digital euro aligned with sustainability goals and social welfare.
The Left in the European Parliament (GUE/NGL): 36 Seats (Lost 1)
The Left is critical of cryptocurrencies due to their potential for illicit activities and environmental impact. They call for banning Bitcoin and crypto mining to save energy and advocate for a digital euro designed to enhance public control over the monetary system and promote economic justice. They support strict regulatory measures to curb speculation and protect consumers.
Non-Inscrits and Smaller Parties
Volt Europa, with five seats, plans to join Renew Europe and holds a progressive stance on cryptocurrencies, advocating for user protection and compliance with financial regulations. The European Christian Political Movement (ECPM), with four seats, supports technological progress provided it does not threaten human dignity or fundamental rights.
Balancing Innovation with Regulatory Oversight
The newly elected European Parliament’s diverse composition will significantly influence the future of cryptocurrency and blockchain technology in the EU. Debates and potential adjustments to frameworks like MiCA are expected, with different political groups advocating for varying levels of regulation and innovation. The Parliament’s approach will shape the EU’s competitive edge in the digital age, balancing innovation with consumer protection and financial stability.
(VERONIKA RINECKER, COINTELEGRAPH, 2024)