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The European Parliament’s economic and monetary affairs committee on Monday voted against a proposal that could’ve limited the use of the popular Proof-of-Work consensus mechanism.
If the vote came in favor of the bill, bitcoin (BTC-USD) and ethereum (ETH-USD) could’ve been banned across the EU’s 27 member states since they both use the PoW blockchain network. Note that PoW, which has come under regulatory scrutiny over energy concerns, is used to confirm transactions and add new blocks to the chain.
The rejection was a “big relief & political success for the bitcoin & crypto community in the EU,” Patrick Hansen, head of strategy and business development at DeFi wallet developer Unstoppable Finance, wrote in a Twitter post.
Meanwhile, bitcoin (BTC-USD -0.2%) is trading sideways at $38.8K over the past 24 hours and ethereum (ETH-USD -0.7%) is down slightly to $2.56K. Some other virtual currencies that use PoW include: dogecoin (DOGE-USD -1.7%), litecoin (LTC-USD -0.9%), bitcoin cash (BCH-USD -0.6%), ethereum classic (ETC-USD -1.7%), Monero (XMR-USD -0.1%) and ZCash (ZEC-USD +2.4%).
Crypto miner stocks are also slumping despite the good news. Riot Blockchain (RIOT -3.7%), Marathon Digital (MARA -4.0%), HIVE Blockchain (HIVE -2.9%), Bit Digital (BTBT -6.8%), Hut 8 Mining (HUT -3.7%), Bitfarms (BITF -1.8%), Stronghold Digital Mining (SDIG -2.4%), CleanSpark (CLSK -5.5%) and Core Scientific (CORZ -3.5%).
Last week, the Bank of Israel published a draft regulation regarding crypto deposits at banks.
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