Together with other non-governmental organizations, the European Crypto Initiative (EUCI) has recently published an open letter to the EU institutions as the EU Commission regarding several recent discussions and proposals about decentralized tech and cryptocurrencies regarding the Data Act case.
The letter advocates for technological neutrality and the adaptability of regulations. It highlights the need for clarification within the Data Act to prevent unintended limitations on using Smart Contracts based on public/permissionless technology. Such limitations could create uncertainty for already deployed Smart Contracts, posing challenges for small and medium size companies that rely on them.
The open letter states that:
-
Replacing the term 'Smart Contract' with 'Digital Contract' to accurately reflect the Act's intended scope and eliminate ambiguities about the applicability of stringent requirements.
-
Clarifying the scope of Article 30 to specifically address 'Smart Contracts' deployed on private and permissioned electronic data records, if the change in terminology is deemed unsuitable.
-
They are limiting Article 2(16) to privately operated and permissioned electronic data records is the least favorable option but could mitigate potential negative impacts if the other proposed changes are not implemented.
The letter states that technological neutrality encompasses two key principles: freedom of choice, the avoidance of mandating specific technologies, and the adaptability of regulations regardless of the technology used. The NGOs argue that the current wording of the Data Act poses challenges to these principles and that it could potentially restrict the use of Smart Contracts based on public/permissionless technology and create uncertainty for already implemented Smart Contracts. Compliance with the new regulations may become difficult for small and medium size companies, hindering innovation and dampening the entrepreneurial spirit that drives the EU's digital market.
What do you think about this response regarding the EU-level discussions about the Data Act? What should the EU do better regarding crypto and decentralization?
Thanks for reading. You can support and reward my writing via:
Pay Pal – [email protected]
Algo - NCG6LBALQHENQUSR77KOR6SS42FGK54BZ5L2HFDSBGQVLGYIOVWYDXFDI4
ADA – addr1q9vfs6nqz4xmtnpljwhv4tukyskd2g7enxd87rpugkwwvfun5pnla5d5tes2mvurrc77e7837yd0scrfk063qlha8wgs8d4ynz
Bitcoin 3HbxyDXE9MhNQ8RqsirqgYvFupQzh5Xby2
ETH - 0x8982cdb97bd23f092f78a16a4fc93c5c4607a285
Seeds – vladlausevic
Skycoin – ZxjhWMJRbTNCRQzy5MekZzH4fhdWFCqBP8
Tezos — tz1QrRzkTAKuPKF8dmGW6c1ScEHBUGvoiJBM
