According to BlockBeats, on September 5, the European Parliament will elect a new European Commission this fall, which will decide the EU’s cryptocurrency policy for the next five years. Although the new Commission will not take office until November at the earliest, there are some trends that can predict its attitude towards cryptocurrency regulation.
First, the political center of gravity in Europe is shifting to the right, which may affect discussions on taxation and innovation approaches. France will face more challenges in the future due to political instability. Second, policymakers will compete for influence on innovation policy, new MPs may enhance their personal reputation by focusing on encryption policy, and senior policy advisers within the Commission may also compete for power. Third, innovation will become a policy pillar, and digital privacy and artificial intelligence are identified as EU policy priorities. The Commission is expected to actively implement the Digital Markets Act and the Digital Services Act.
On the market side, increased institutional adoption of cryptocurrencies could trigger political intervention, while the exposure of greater retail investment in cryptocurrencies in traditional finance could also trigger political reactions. The EU has made significant progress on global encryption policy, and new legislative work should ensure the effective implementation of existing rules.
