Bitcoin
$59,512.32+3.02%
Ethereum
$2,986.89+1.41%
Binance Coin
$568.07+2.46%
Solana
$138.91+4.14%
XRP
$0.51992156+0.97%
Dogecoin
$0.13363291+3.69%
Toncoin
$5.40+12.25%
Cardano
$0.45102036+0.11%
Shiba Inu
$0.00002306+4.29%
Avalanche
$33.85+3.04%
Tron
$0.12242178-0.02%
Polkadot
$7.09+1.44%
PlayIconNav
Crypto Prices CoinDesk 20 Index CoinDesk 20 Index
RSVP for Karate Combat 46 InOpen to All Consensus Pass Holders
00
DAYS
06
HR
02
MIN
49
SEC
Policy

EU Parliament Approves Data Act With Smart-Contract Kill Switch Provision

The final version of the bill's text, reviewed by CoinDesk in July, revealed that it contained a smart-contract kill switch clause.

By Camomile Shumba
AccessTimeIconNov 9, 2023 at 3:36 p.m. UTC
(Christian Lue/Unsplash)
(Christian Lue/Unsplash)
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Members of the European Parliament voted Thursday to approve a Data Act containing a controversial clause that could make most smart contracts unlawful.

The act, which establishes rules on the sharing of data, received 481 votes in favor and 31 votes against, according to a press release. The legislation now needs formal approval from the European Council, a body comprising the 27 member nations' heads of state.

The final version of the bill, reviewed by CoinDesk in July, contained a provision requiring automated data-sharing agreements to be capable of being safely terminated. The July 7 text referred broadly to “smart contracts” rather than to privately owned and permissioned data records. Smart contracts are tools that automatically execute transactions when certain conditions are met. Organizations linked to blockchains like Stellar, Polygon, NEAR and Cardano expressed their concerns in an open letter at the time.

Read more: EU's Data Act Final Draft Still Contains Controversial Smart Contract Kill Switch

Edited by Sheldon Reback.


Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Camomile Shumba
Camomile Shumba

Camomile Shumba is a CoinDesk regulatory reporter based in the UK. She previously worked as an intern for Business Insider and Bloomberg News. She does not currently hold value in any digital currencies or projects.

Follow @camomileshumba on Twitter

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.