Crypto Surges as European Mining Ban Falls Through
- Wording from the proposed EU Crypto Asset Markets Bill that would effectively ban crypto mining was removed on Monday
- US officials say Russia has asked China for military aid, which has heightened geopolitical tensions and dragged stock markets down
Bitcoin and other cryptocurrencies rose on Monday as the European Union rolled back a regulatory move that would have effectively banned crypto mining.
The section – which would broadly regulate the digital asset space – was removed from the Crypto Asset Markets Bill (MiCA) on Monday. This has allayed concerns from industry players who have protested the measure since it was introduced by the EU in 2020.
The suppression boosted markets even as stocks fell on the day. Bitcoin climbed 2.85%, while Ether rose 1.14% at the end of stock trading.
Stefan Berger, Member of the European Parliament from Germany, said that proof-of-work cryptocurrency mining is no longer included in MiCA.
“Given the important debate on sustainability, my suggestion is to include crypto assets, like all other financial products, in the #Taxonomy domain,” Berger said. “An independent discussion of proof of work is no longer expected in #Mica.”
THORchain, a decentralized liquidity protocol, was again the biggest crypto gainer of the day among the top 100 coins by market capitalization, gaining 11.61%.
Stocks struggled on Monday after news emerged that Russia had asked China for military help in its efforts in Ukraine. Jake Sullivan, White House National Security Advisor noted Sunday that the United States is “watching closely to see the extent to which China actually provides any form of support, material or economic, to Russia.”
Growing geopolitical tension continued to add uncertainty to the stock market, causing high volatility. The S&P 500 fell another 0.74% on Monday, while the Nasdaq fell 1.92%. The Dow remained stable.
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Investors should be prepared for the Fed Funds rate announcement from the Federal Open Market Committee on Wednesday. The expected rate change is likely to move the markets.
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