EU Parliament: Smart Contracts Data Act Not Problematic

• The EU Data Act contains a worrying provision for smart contracts, but a spokesperson from the European Commission has stated that article 30 of the Act is “not problematic”.
• This new regulation could affect both centrally operated or distributed ledgers and was met with outcry from the crypto community.
• Polygon Labs sent an open letter to EU lawmakers asking them to consider amendments in Article 30 to protect their decentralized ecosystem.

EU Parliament on Smart Contracts: Data Act Is „Not Problematic“


The global crypto regulations are still in flux, with different jurisdictions taking varied approaches. In Europe, one of the first crypto frameworks, MiCA , has been launched, but work still needs to be done. The EU’s Data Act sent shockwaves across the crypto, and especially the DeFi sector, in April when it proposed that smart contracts should be required to have a “safe termination or interruption” mechanism integrated, also known as a kill switch.

European Commission Statement

In conversation with DailyCoin , the European Commission has allayed some concerns by stating that “The essential requirements in Art 30 of the Data Act are quite high-level, and they should not be problematic for the vendors of smart contracts software and blockchain.“ Moreover, they clarified that this new provision is intended to cover software used to automate contracts regardless if it employs a centrally operated or distributed electronic ledger (such as blockchain).

Outcry from Crypto Community

This new legislation was immediately met with outcry from the blockchain community which prompted Polygon Labs sending an open letter to EU lawmakers asking them to consider amendments in Article 30 so as to protect their decentralized ecosystem.


The European Commission continues its work on hashing out details around the Data Act; however they have allayed some initial fears by stating that article 30 is „not problematic“. As of now there is some time before full clarity is offered but this statement gives reason for optimism among those involved in DeFi projects within Europe.