The draft contains a late addition that looks to limit the use of cryptocurrencies powered by an energy-intensive computing process known as proof-of-work. Although the vote is still a close call, a small majority of committee members may vote against the measure.
For cryptocurrencies like Bitcoin and Ether, that are already being traded in the EU, the rule proposes a phase-out plan to shift their consensus mechanism from proof-of-work to other methods that use less energy, like proof-of-stake.
A previous version of the provision proposed the prohibition of proof-of-work crypto in the EU starting in January 2025. The provision was later dropped following criticism from crypto advocates before the modified version made it back into the latest draft.
Once parliament decides on the draft, it will move on to a trilogue, which is a formal round of negotiations between the European commission, council, and parliament.
The provision was met with swift backlash from the crypto community worldwide.
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