European Parliament Elections and the Future of Digital Assets Regulation

The recent European Parliament elections saw a centrist majority with the Progressive Alliance of Socialists and Democrats, European People's Party, and Renew holding over 410 votes. Although the far-right won in Germany, France, and Italy, the EPP is unlikely to form an alliance with them due to ideological differences. The ECR gained 15 seats, but their stance on digital assets is inconsistent. The digital assets industry is moving towards regulation and compliance, and the new European Parliament and College of Commissioners will play a crucial role in determining its future. The upcoming elections in Europe are important as far-right movements are spreading anti-European sentiments using economic struggles. EU competitiveness and the need for more active capital markets are the priorities of elected leaders. The digital assets industry needs to establish trust and credibility in the next five years. Compliance is important, but it is not enough for the industry in the long run. Note that the views expressed in this column are those of the author and not necessarily reflective of CoinDesk, Inc. or its affiliates.