Pro-crypto parties pick seats among green losers

Between June 6 and 9, more than 185 million people from the 27 member states of the European Union voted for candidates to serve a five-year term in the new European Parliament, the legislative body of the political union.

This important event will shape the political direction of the European Union for five years, and crypto and blockchain are no exception.

The results of the election were mixed, with the Christian Democrats winning 10 seats, the Social Democrats hanging on and losing just four seats, and the pro-business (and pro-crypto) European Renewed Group losing 23 seats.

The Greens also lost 18 seats, while far-right parties made significant gains.

So what plans do these parties have for the crypto and blockchain industries?

Cointelegraph reviewed the election manifestos of various parties and interviewed several members of the European Parliament about their future plans.

European People's Party (EPP), or Christian Democrats – 186 seats (gained 10)

The EPP Group, one of the largest and most influential political groups in the European Parliament, generally takes a cautious and forward-looking stance on cryptocurrencies, the digital euro and blockchain technology.

The group recognizes the transformative potential of blockchain and digital currencies in enhancing financial services and economic efficiency. However, it highlights the need for strong regulatory frameworks to prevent abuse, ensure consumer protection and maintain financial stability.

MEP Stefan Berger, a member of the EPP group that helped negotiate the EU's main crypto regulation – Markets in Crypto-assets (MiCA), told Cointelegraph:

“Crypto-assets are gaining importance and have a place to complement the traditional financial system. We see crypto-assets as forward-looking technologies and options for consumers and businesses, and support balanced regulation that allows room for continued development and innovation.”

The EPP supports the current MiCA legislation but sees potential for future adjustments. “MiCA creates confidence in the industry, provides security for founders and provides a significant competitive advantage to the European economic environment,” Berger said. It is clear that we need a legal framework for NFTs in the future that will benefit consumers and the industry as a whole.

The EPP supports a more relaxed tax policy for crypto. Berger said the party wants to strengthen Europe as an innovation hub and limit crypto assets through restrictive tax policies.

The party also wants to explore the potential of blockchain technology outside of crypto.

“Blockchain can bring efficiency gains and enable new applications in public administration processes. This will strengthen citizens' trust in government and its administration,” Berger said.

Union of Progressive Socialists and Democrats (S&D) – 135 seats (4 missing)

The S&D team is cautiously optimistic about blockchain and cryptocurrencies. The group recognizes the potential benefits of these technologies in promoting financial inclusion and improving public services. However, the main issue is the regulatory and social implications.

S&D calls for stricter laws to prevent fraud, money laundering and tax evasion. He supports the idea of ​​a digital euro, seeing it as a tool to increase the effectiveness of monetary policy and protect consumers.

Renew Europe – 79 seats won (23 lost)

Renewal Europe, a centrist and liberal political group, has been a major voice in the European debate on crypto. The group reports on the 2020 report on digital finance adopted by the European Parliament.

Since then, he has consistently called for a strong regulatory framework for crypto assets to ensure the EU is ready for structural digital transformations.

️“Digital finance, without many of us even realizing it, affects the lives of every EU citizen. The pandemic has made Europeans digital, now EU rules must be looked at, says @OKvarikMEP, reporter of the report on #digitalfinance #fintech More: pic.twitter.com/P1Pxo15cig

— Renew Europe (@RenewEurope) October 8, 2020

Renew Europe championed a proactive, innovation-friendly approach to blockchain and digital assets. The party sees blockchain technology as a key driver of transparency, efficiency and growth in various sectors.

The group supports the development and establishment of a digital euro, which it believes is essential to maintain the EU's competitiveness in the digital age. New Europe describes the digital euro as “an ambitious project that preserves public money as a currency anchor, strengthens Europe's strategic autonomy in the payments sector and promotes financial inclusion.”

In addition, Renew Europe strongly advocates for a European digital identity. The party believes that a secure and universally recognized digital identity system will increase trust in digital transactions, streamline administrative processes and improve access to public and private services.

Group of European Conservatives and Reformists (ECR) – 73 seats (gained 4)

The ECR Group has a pragmatic and cautious view on cryptocurrency, reflecting a broad spectrum of conservative and reformist principles.

The group sees blockchain and cryptocurrencies as promising tools for economic growth and modernization. According to ECR, these technologies can benefit businesses and consumers by making Europe's financial sector more competitive and efficient. He believes that cryptocurrencies should integrate with the various financial ecosystems and support the MiCA regulation.

However, the ECR supports strict anti-money laundering measures against the misuse of cryptocurrencies. It also requires strong cyber security measures to protect against hacking and other threats.

ECR is skeptical about the digital euro, calling it a “problem looking for a solution” and the popularity and rise of cryptocurrencies is an irresponsible monetary policy.

The group argues that solutions such as instant payments offer the benefits envisioned by digital euro proponents without the associated risks and complications.

Identity and Democracy (ID) – 58 seats (won 9)

While the populist and nationalist ID Group does not have an official position on digital currencies and blockchain, member parties such as the Alternative for Germany (AfD) have at least some ideas on the digital euro.

The AfD sees the euro as fundamentally flawed and incapable of sustaining a union of 20 different economies. The party thinks it is further evidence of the structural instability of the euro, often at the expense of Germany.

The AfD opposes the introduction of the digital euro by the European Central Bank. The party views it as a threat to money, which is necessary to protect individual freedom and privacy from government surveillance and control. The party defends cash as a constitutional right, fearing that the digital euro could undermine this fundamental freedom.

In contrast, Marine Le Pen of France's National Rally (who is a member of the ID group) has moderated her stance on cryptocurrencies despite her skepticism.

After initially calling for a ban on Bitcoin (BTC) in 2016, Le Pen now favors tighter regulation rather than fully supporting crypto or blockchain technology.

Greens/European Free Alliance (Greens/EFA) — 53 seats (18 abstentions)

The Greens/EFA Group does not have a general policy on cryptocurrencies or blockchain.

EFA policy adviser Paul Butcher explained to Cointelegraph: “As a European political party, we are a union of member parties who have different views on the subject or have not developed policies on the sector.” For this reason, we have not yet discussed this issue at our General Assembly or at the EFA Congress where our 2024 Manifesto is being prepared.

However, EFA supports the principle of subsidiarity and the MiCA regulation. According to Bucher, the party welcomes MiCA “as a starting point for a European-wide regulatory framework on crypto-assets, which by their nature cross borders and cannot be adequately controlled at the national or regional level alone.”

However, we strive to maintain the right of member states and regions to legislate in these areas with regard to taxes and special measures to expand the sector.

EFA recognizes the potential of crypto assets to give individuals greater freedom and ownership over their finances. Boucher added: “We support this competition in the traditional banking sector and we want it to be set up with appropriate guidelines so that investors are protected when they want to manage themselves.”

The Greens/EFA Group takes a cautious and socially conscious stance on blockchain. It acknowledges its potential to increase transparency and sustainability in sectors as diverse as supply chain management and energy.

However, he is wary of the environmental impact of some cryptocurrencies, particularly those that rely on power-intensive consensus mechanisms such as proof-of-work.

The Greens/EFA Group supports the exploration of a digital euro that aligns with sustainability goals and contributes to social welfare.

Left in the European Parliament (GUE/NGL) – 36 seats (missing 1)

The left is critical of cryptocurrencies, citing their potential to facilitate illegal activity and exacerbate economic inequality. He is wary of the speculative nature of cryptocurrencies and the risks they pose to financial stability.

According to the left, “crypto assets are an ecological disaster. Germany's left-wing party's election manifesto calls for a ban on bitcoin and crypto mining to save energy.

Crypto-assets, which are the “Wild West”, must be controlled. Any potential use of crypto-assets in terms of efficiency and technological innovation should be leveraged in the design of a public currency such as the digital euro. pic.twitter.com/MmzGBNZ1Ch

— Chris MacManus MEP (@MacManusChris) April 19, 2023

MEP Chris MacManus (Ireland) said that he had “no desire to create or encourage a market for crypto assets”, “at worst they are pyramid schemes, or they are used by criminal groups for money laundering or fraud. They can waste large amounts of energy of working people for no purpose.” .

“I don't see any social or economic benefit to these speculative tools. I accept the fact that crypto assets exist, and short of banning them, they should be regulated.”

The left supports the digital euro, designed to strengthen public control over the financial system and promote economic justice. It advocates stricter regulatory measures to curb speculation, protect consumers, and serve the broader public interest of digital financial innovations.

Unregistered

Non-enrolled are MEPs who do not belong to one of the recognized political groups listed above.

Volt Europa – 5 seats won (plan to join renewal in EU Parliament)

Volt Europe, a European federalist party focused on innovation and digital rights, has a progressive stance on cryptocurrencies.

It believes that cryptocurrencies are useful in the traditional financial system and ensures compliance with financial regulations to protect users' digital rights. Pauline Rabe, who handles public relations for Vault Europe, told Cointelegraph.

“Cryptocurrencies are tied to the traditional financial system, as the recent emergence of Bitcoin shows. [exchange-traded funds]. As such, it is an asset class that is here to stay, so our main concern is the impact on society and the economy.

Vault supports the introduction of the digital euro without limits and with payments to encourage competition in the market for deposit and payment services. The regulatory approach, including the MCI, emphasizes the need for transparency and consistency to avoid unnecessary red tape for investors and companies across the EU.

When it comes to taxation, Vault proposes to treat crypto investments like any other investment. It aims to harmonize European investment regulation to create a unified market for financial investments. As part of this harmonization effort, the party supports the creation of mutual funds and exchange of crypto assets.

As for blockchain technology, Vault sees potential applications in digital IDs, e-health and certificate distribution. It supports further research and development to advance blockchain's cryptographic foundations and support new companies exploring their real-world applications.

“Vault wants to triple the budget of the Horizon Europe program. To facilitate innovative start-ups, Vault strives to establish a full European venture program and support entrepreneurs to adapt to the EU regulatory framework, for example by creating regulatory sandboxes.

European Christian Political Movement (ECPM) – won 4 seats

According to Adriana Roos, the ECPM's communications manager, the party generally supports technological development “as long as it does not challenge human dignity and basic rights, such as privacy and free speech, and does not harm the environment.”

Some ECPM members are critical of initiatives such as the European digital wallet and EID, believing they undermine privacy and anonymity. However, beyond these concerns, ECPM has not developed a detailed policy on cryptocurrencies.

Balancing innovation with regulatory control

The newly elected European Parliament will greatly influence the future of cryptocurrency and blockchain technology in the EU. Each political group has a different perspective: the EPP group supports balanced rules to support growth and innovation, the S&D group prioritizes strict rules to prevent abuse and supports the development of the digital euro. Renew Europe to take a proactive stance on digital assets by pushing for a digital euro and a European digital identity.

Given the diverse composition of Parliament, debates and possible adjustments to frameworks such as the MCA are expected. The presence of far-right and conservative parties adds to the complexity, with some skeptical about the digital euro and prioritizing stricter anti-money laundering measures. Meanwhile, smaller groups such as the Greens and the Left emphasize environmental issues and social justice in digital finance.

Dislcaimer: The European elections are still underway in Ireland, but most of the results are in and counted. Figures may be subject to some changes.