- European Data Act Negotiations Set to Conclude by June End.
- Future Dialogue Meeting Set for May 23 to Continue Discussions.
The European blockchain sector is gearing up for a final effort to prevent regulations that could potentially harm the smart contracts supporting decentralized finance (DeFi) protocols. European authorities have been working on implementing these regulations, and the blockchain sector aims to avert their negative impact.
In addition, discussions regarding the European Data Act, which seeks to regulate data exchange among smart devices using IoT networks, are anticipated to conclude by the end of June. The DeFi industry expresses apprehension over the absence of clear guidelines governing the smart contracts at the core of their operations.
Advocates of DeFi, including the European Crypto Initiative, have called upon politicians to consider the concerns of the wider blockchain development community impacted by the scope of the Data Act. The European Crypto Initiative warns that such repercussions could have severe consequences for the DeFi sector.
Marina Markezic, Executive Director of the European Crypto Initiative, expressed:
“Marina Markezic, Executive Director of the European Crypto Initiative, raised concerns, stating that the worst-case scenario would be the potential inability to utilize public blockchains for smart contracts while adhering to the Data Act regulations. She emphasized that Europe should avoid hindering innovation and technological advancement in the broader blockchain industry by inadvertently causing self-inflicted harm”.
All Eyes on Next Meeting
Legislators are expected to address industry concerns during the upcoming discussions, which are set to take place next week. A European Commission official has clarified that the disputed article regarding smart contract legislation is neutral towards technology.
As per the spokesperson, the article establishes high-level requirements for smart contracts, irrespective of whether they are stored in a blockchain or a conventional database.
The three European institutions engaged in the negotiations hold differing perspectives on the Data Act. The concerns regarding the phrasing of the Data Act will be addressed during the upcoming dialogue meeting scheduled for May 23.
