Between June 6 and 9, over 185 million individuals across the 27 member states of the European Union participated in the voting process to elect representatives for a five-year term in the new European Parliament, the legislative body of the EU. This significant event will shape the political landscape of the EU for the next half-decade, with the crypto and blockchain sectors also impacted by the outcome.
The election results showed a mixed bag of outcomes: the Christian Democrats secured 10 additional seats, while the Social Democrats managed to retain most of their positions, losing only four seats. On the other hand, the pro-business and pro-crypto Renew Europe Group faced a setback, losing 23 seats. The Greens also suffered a loss of 18 seats, while far-right parties made noticeable gains.
So, what are the plans of these political parties regarding the crypto and blockchain industries? Cointelegraph delved into the election manifestos of various parties and conducted interviews with several members of the European Parliament to gain insights into their future strategies.
European People’s Party (EPP), also known as the Christian Democrats, secured 186 seats, gaining 10. The EPP Group, being the largest and most influential political group in the European Parliament, takes a cautious yet forward-thinking approach towards cryptocurrencies, the digital euro, and blockchain technology. Recognizing the transformative potential of blockchain and digital currencies in enhancing financial services and economic efficiency, the group stresses the importance of robust regulatory frameworks to prevent misuse, ensure consumer protection, and maintain financial stability.
MEP Stefan Berger from the EPP Group, who played a key role in negotiating the EU’s major crypto regulation, Markets in Crypto-Assets (MiCA), emphasized the party’s support for the current MiCA law while acknowledging the need for potential adjustments in the future. The EPP advocates for a more relaxed tax policy for crypto to strengthen Europe as an innovation hub and opposes restrictive tax policies that hinder the adoption of crypto assets.
The Progressive Alliance of Socialists and Democrats (S&D) lost four seats, securing 135 in total. The S&D Group holds a cautious yet optimistic view on blockchain and cryptocurrencies, recognizing their potential benefits in promoting financial inclusion and improving public services. However, the group emphasizes the need for strict regulations to prevent fraud, money laundering, and tax evasion, supporting the idea of a digital euro to enhance monetary policy effectiveness and consumer protection.
Renew Europe, a centrist and liberal political group, secured 79 seats but lost 23. The group is a vocal advocate for a robust regulatory framework for crypto assets to prepare the EU for digital transformations. Renew Europe champions an innovation-friendly approach to blockchain and digital assets, viewing blockchain technology as a driver of transparency, efficiency, and growth across various sectors. The party supports the development of a digital euro to maintain the EU’s competitiveness in the digital age and advocates for a European digital identity.
The European Conservatives and Reformists Group (ECR) gained four seats, totaling 73. The ECR Group takes a pragmatic and cautious stance on cryptocurrency, viewing blockchain and cryptocurrencies as tools for economic growth and modernization. While supporting the integration of cryptocurrencies into a diverse financial ecosystem and the MiCA regulation, the ECR emphasizes stringent Anti-Money Laundering measures to combat misuse and robust cybersecurity measures to defend against threats.
Identity and Democracy (ID) gained nine seats, totaling 58. While the ID Group does not have an official stance on digital currencies and blockchain, individual parties within the group, such as Germany’s Alternative for Germany (AfD), have expressed views on the digital euro. The AfD opposes the introduction of a digital euro, considering it a threat to individual freedom and privacy from government surveillance. Marine Le Pen of France’s National Rally has softened her stance on cryptocurrencies, now supporting strict regulation over an outright ban.
The Greens/European Free Alliance (Greens/EFA) lost 18 seats, securing 53 in total. The Greens/EFA Group supports the principle of subsidiarity and the MiCA regulation, welcoming it as a starting point for a European-wide regulatory framework on crypto assets. The group acknowledges the potential of crypto assets to empower individuals over their financial affairs, emphasizing the need for appropriate regulations to protect investors while allowing for self-custody.
The Left in the European Parliament (GUE/NGL) lost one seat, bringing their total to 36. The Left is critical of cryptocurrencies, expressing concerns over their potential to facilitate illicit activities and exacerbate economic inequality. The party supports a digital euro to enhance public control over the monetary system and advocates for strict regulatory measures to curb speculation and protect consumers.
Volt Europa, a pro-European federalist party securing five seats, takes a progressive stance on cryptocurrencies, emphasizing the need to protect users’ digital rights while complying with financial regulations. The party supports the introduction of a digital euro without limits and advocates for harmonized European investment regulation to create an integrated market for financial investments. Volt sees blockchain technology’s potential applications in digital identities, e-health, and certificate diffusion, supporting further research and development in this field.
The European Christian Political Movement (ECPM) secured four seats and generally supports technological progress as long as it aligns with human dignity, fundamental rights, and environmental protection. While some ECPM members have reservations about initiatives like the European digital wallet and eID, the party has not established a detailed policy on cryptocurrencies.
The newly elected European Parliament will play a crucial role in shaping the future of cryptocurrency and blockchain technology in the EU. Each political group brings a unique perspective, with debates and potential adjustments to regulatory frameworks expected. The presence of far-right and conservative parties adds complexity to the discussions, while smaller groups like the Greens and the Left emphasize environmental concerns and social justice in digital finance. Please note that the European elections are still ongoing in Ireland, and figures may be subject to change.