Polygon Labs, the central organization behind the development of the Ethereum layer 2 scaling solution, polygonurged policy makers to the European Union To “clarify scope and intent” of legislation targeting smart contracts. In open letter addressed to the Members of the European Parliament, of the European Council and of the European Commission on 17 April, Polygon Labs recommended to modify article 30 of the Data Act to apply specifically to systems based on smart contracts authorized, owned and operated by a “business“, as opposed to the current wording without permission.
The company said the hardware wallet developer Ledger also joined the call for more appropriate legislation. Polygon Labs emphasized its vested interest in ensuring the responsible development and growth of permissionless blockchain-based systems around the world.
Section 30 of the Data Act worries Polygon and Ledger
Article 30 of the version of the Data Act passed by the European Parliament in March, defined the “essential requirements for smart contracts for data sharing. Polygon Labs argues that if the law is passed without amendments to clarify the nature of the parties exploiting smart contracts, the legislation would not apply to open-source, permissionless and decentralized smart contract applications. This lack of clarity could significantly hamper innovation and economic growth within the EU.
Several experts have expressed similar concerns about the data law’s possible impact on how regulators approach smart contracts.
Align the Data Act with the MiCA framework
Polygon Labs called for the data law to remain in line with the notorious MiCA framework, which is due for a final vote on April 19 after tough negotiations between the European Parliament, the European Council and the European Commission. There data law is expected to undergo similar scrutiny by EU policymakers before reaching its final form, allowing ample time to consider Polygon Labs’ application.
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