Market Wrap: Crypto Rises as European Mining Ban Falls Through
The EU bill to regulate crypto removed language that would have effectively banned mining, sending crypto markets up, while equities fell amid tensions with Russia
Blockworks exclusive art by axel rangel
key takeaways
- Language in the EU’s Markets in Crypto Assets bill that would effectively ban crypto mining was removed Monday
- US officials claim that Russia has asked China for military aid, heightening geopolitical tension and pulling equity markets down
Bitcoin and other cryptocurrencies pushed higher Monday as the European Union nixed a regulatory measure that would have effectively banned crypto mining.
The section — which would broadly regulate the digital assets space — was removed from the Markets in Crypto Assets (MiCA) bill Monday. It quieted the concerns of industry participants who have protested the measure since it was introduced by the EU in 2020.
The removal boosted markets even as equities fell on the day. Bitcoin climbed 2.85%, while ether rose 1.14% by the end of stock trading.
Stefan Berger, a member of the European Parliament from Germany, said proof-of-work crypto mining was no longer included in MiCA.
"In view of the important debate about sustainability, my suggestion is to include crypto assets, like all other financial products, in the #Taxonomie area," Berger said. "An independent discussion of the Proof-of-Work is no longer planned in #MiCA."
THORchain, a decentralized liquidity protocol, was again crypto’s biggest gainer of the day among the top 100 coins by market capitalization, with an 11.61% gain.
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Equities struggled Monday after reports emerged that Russia had asked China for military aid in its efforts in Ukraine. White House National Security Advisor Jake Sullivan said Sunday that the US is "watching closely to see the extent to which China actually does provide any form of support, material support or economic support, to Russia."
The growing geopolitical tension has continued to add uncertainty to the stock market, causing high volatility. The S&P 500 fell by another 0.74% Monday, while the Nasdaq fell 1.92%. The Dow remained flat.
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Going forward
Investors should prepare for the Federal Open Market Committee's federal funds rate announcement Wednesday. The expected rate change is likely to move markets.
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