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- Negotiations regarding the European Data Act are anticipated to conclude by the end of June.
- Further discussions will take place at the upcoming dialogue meeting on May 23.
The European blockchain industry is gearing up for a final effort to prevent regulations that could undermine the smart contracts that form the foundation of decentralized finance (DeFi) protocols that European authorities are seeking to implement.
Additionally, discussions on the European Data Act, which aims to regulate data exchanged between smart devices using IoT networks, are expected to be finalized by the end of June. The DeFi sector as a whole is apprehensive about the opacity in the regulations governing the foundational smart contracts.
Advocates for DeFi, including the European Crypto Initiative, have called on lawmakers to consider the concerns of a wider range of blockchain developers who could be impacted by the Data Act’s implications. The European Crypto Initiative warns that such repercussions could be detrimental to DeFi.
Marina Markezic, executive director of the European Crypto Initiative, remarked:
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“The worst-case scenario is whether we would even be able to use public blockchains for utilizing smart contracts while adhering to the Data Act requirements. Europe shouldn’t undermine its own interests by unintentionally hindering innovation and technological advancement in the broader blockchain sector.”
All Eyes on Next Meeting
Industry concerns regarding the forthcoming discussions may be addressed by lawmakers next week. A European Commission representative stated that the contentious article on smart contract legislation is technology-neutral.
The spokesperson indicated that it establishes high-level requirements for smart contracts, regardless of whether they are stored on a blockchain or in a traditional database.
However, the Data Act is perceived differently by the three European institutions involved in the negotiations. The issues surrounding the wording of the Data Act will be discussed at the upcoming dialogue meeting on May 23.
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