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Members of the European Parliament voted Thursday to approve a Data Act containing a controversial clause that could make most smart contracts unlawful. The act Despite the concerns, the act has gone ahead with the controversial smart contract kill switch. ⁰Tonight’s agreement on the DataAct is a milestone in reshaping the 17 de sept. de 2025 The European Union introduced the smart contract kill switch as part of its Data Act to address data privacy without stifling innovation. The aim was to give people more On June 28, an agreement was reached between the European Council and Parliament on the Data Act, pushing forward legislation pertaining to non-personal data. The The European Union has made a landmark move by passing the new “Data Act.” It includes a controversial smart contract kill switch provision. This provision, a part of the European Union (EU) lawmakers have agreed to move ahead with the controversial European Data Act, which has previously drawn criticism from the crypto

Crypto EU Moves Ahead with Disputed Smart Contract Kill Switch: What You Need to Know

The European Union (EU) has taken a significant step by passing the new “Data Act,” sparking controversy within the crypto community. EU lawmakers have agreed to move ahead with the controversial European Data Act, which has previously drawn criticism from the crypto industry due to a particular clause: a potential "smart contract kill switch." This provision, a part of the act, has raised concerns about the future of decentralized finance (DeFi) and blockchain technology within the EU.

The Data Act: A Milestone or a Misstep for Crypto?

On June 28, an agreement was reached between the European Council and Parliament on the Data Act, pushing forward legislation pertaining to non-personal data. The Data Act aims to address data privacy without stifling innovation, with the goal to give people more control over their data. Tonight’s agreement on the DataAct is a milestone in reshaping the digital landscape, setting the stage for new regulations. However, within this act lies a controversial clause regarding smart contracts.

The Controversial Smart Contract Kill Switch

Members of the European Parliament voted Thursday to approve a Data Act containing a controversial clause that could make most smart contracts unlawful. The act, despite the concerns, has gone ahead with the controversial smart contract kill switch. This "kill switch" provision allows designated authorities to modify or even terminate smart contracts under certain circumstances. Opponents argue that this undermines the very essence of smart contracts, which are designed to be immutable and autonomous. Critics believe that this could stifle innovation and drive crypto businesses away from the EU.

Understanding the Implications

The implications of this "smart contract kill switch" are far-reaching. Concerns are centered on the potential for censorship, manipulation, and the erosion of trust in blockchain technology. While the EU aims to strike a balance between data privacy and innovation, many in the crypto space believe this specific measure overreaches and poses a significant threat to the industry\'s development within the region.

The future of crypto in the EU now hinges on how this Data Act and its controversial smart contract provision are interpreted and implemented. 17 de sept. de 2025 is a date to watch, as further clarifications and enforcement actions are expected to unfold following the passing of this legislation.

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