Circle EU Affairs Director: European Parliament Reaches Preliminary Agreement on EU Data Law, Including Regulation of Smart Contracts

Jonas Frederiksen, senior director of EU government affairs at USDC issuer Circle, tweeted that the European Parliament has reached a preliminary agreement on its negotiating position on the EU Data Law, which includes the regulation of smart contracts. The European Parliament proposal outlines basic requirements for smart contracts, including robustness and access control, safe termination and interruption, and equivalence to traditional contracts. What's more, the European Parliament proposal removes many of the strict provisions in the Commission's original proposal, including conformity assessment and EU declaration of conformity, compliance responsibilities of suppliers, and harmonized standards. This means that the EU will take a more pragmatic approach to regulating smart contracts, providing the necessary protections while removing barriers to deployment and development. Jonas Frederiksen said that in the next step, the Swedish EU presidency and council members will finalize their version along a similar line to the smart contract proposal.