Christine Lagarde has now also intervened in the dispute over the regulation of cryptocurrencies. In a press conference Last Friday, the head of the ECB pushed for a solution to be reached as soon as possible Markets-in-Crypto-AssetsRegulation (MiCA). This was preceded by a question about whether Russia could use cryptocurrencies to circumvent sanctions.
Whenever there is a ban or boycott mechanism, there are always criminal avenues that try to circumvent these restrictions. It is therefore all the more important that MiCA is enforced as soon as possible so that we can have a regulatory framework for crypto assets.
ECB President Christine Lagarde
However, there is no quick solution for now. Although the EU Parliament wanted to release a corresponding final draft for a vote on February 28, this did not happen. The chairman of the responsible Committee for Economics and Currency (ECON), Stefan Berger (CDU), also announced last Friday that the vote would be temporarily suspended.
The CDU MEP justified the step with “individual passages of the draft report” that could be misinterpreted and understood as a PoW ban.
This is a passage that, from January 1, 2025, will prohibit providers from providing services that are in any way related to crypto assets that are based on ecologically unsustainable consensus mechanisms. In this context, Berger raised the issue of renegotiations.
ECB to create new supervisory authority
The ECB did not want to comment further on Berger’s move when asked. Meanwhile, the CDU politician is not deterred by Lagard’s political pressure. Berger told:
It is true that we should not waste any time with the MiCA. Discussions with those involved are in full swing so that the MiCA can be brought to an end as quickly as possible. After that, MiCA still needs a trilogue anyway, which will extend the process in the medium term.
In addition, the MEP recommended setting up a “single European supervisory authority”. The ECB, the European Banking Authority (EBA) as well as the European Securities and Markets Authority (ESMA) should endeavor to create the new crypto institution in advance.
Meanwhile, a new date for the postponed vote has not yet been found. Berger’s MP’s office says they want to organize the schedule as soon as possible.