Thread by @EuCInitiative

#EUCI, with other 5 organisations and 55 signatories, has written an open letter addressing concerns regarding the #DataAct.

We call on lawmakers to reconsider and clarify certain aspects of it, to ensure neutrality and legal certainty in the #blockchain industry.

🟣 Article 2(16)

The current definition of 'Smart Contracts' is broad, and we fear it may lead to unintended consequences for existing #SmartContracts on public #blockchains, such as Ethereum, Avalanche, Cardano, Cosmos, IOTA, NEAR, Chromia, and Polkadot.

We propose three alternative solutions to bring more legal clarity:

substituting 'Smart Contract' with 'Digital Contract', clarifying the scope of Article 30, or limiting Article 2(16) to privately operated and permissioned electronic data records.

🟣 Article 30

The wording of Article 30 could potentially jeopardise the growth of #DeFi, which heavily relies on public #blockchains and Smart Contracts.

We believe that refining this article is crucial to mitigating unintended economic impacts on the Single Market and preserving the competitiveness of European #blockchain innovations.

We urge lawmakers to consider our proposals to ensure that the #DataAct fosters a regulatory environment conducive to innovation without stifling the immense potential of #DLT applications.

@BlockchainforEU @EUBLASORG @DigitalDcgg @INATBA_org @iota

➡️ Visit our website or get in touch to support the Open Letter. More information here: data-act.info

#DataAct #CryptoRegulation

We remain open to further discussion and are committed to working with relevant stakeholders to achieve greater legal clarity and technological neutrality in the #DataAct.

#CryptoRegulation