The European Union (EU) Makes Progress on European Data Act
The European Union (EU) has reached an agreement to proceed with the European Data Act, despite criticism from the cryptocurrency community. Thierry Breton, the E.U.’s Commissioner for Internal Markets, described this as a significant milestone in reshaping the digital landscape.
- The incorporation of reset options: The new E.U. legislation includes a requirement for smart contracts to have mechanisms for termination or interruption, raising concerns among crypto proponents.
- The progress based on Article 30: Article 30 of the Data Act introduces the requirement for smart contracts to have clear reset or halt options to prevent unintended executions in the future.
- Controversy and concerns: While some provisions in Article 30 offer enhanced security, others argue that incorporating control mechanisms contradicts decentralization principles and grants excessive power to regulators.
- Ambiguity and challenges: The language of the legislation remains ambiguous, leading to interpretation and speculation. Critics argue that compliance requirements may impede innovation and pose challenges for smart contracts.
- The final agreement: The Act agreed upon must receive favorable votes from the European Parliament and Council to become a law.
Hot Take: The European Data Act’s progress is a significant development in reshaping the digital landscape. However, concerns remain within the cryptocurrency community regarding the requirement for smart contracts to include reset options and the potential challenges for innovation and compliance. The final agreement’s fate will be determined by the votes of the European Parliament and Council.
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