⏮️ Look back at how EU legislation shapes crypto regulation with our past analysis, where MiCA served as a practical reference for understanding the process. Do you believe that EU regulations have helped or hindered the growth of crypto? #EULegislation #EUPolicies #CryptoRegulation #MiCA
As #MiCA progresses through the legislative process, it's natural to wonder why it takes time before it becomes law. In this thread, we'll break down the EU legislative process to give you a better understanding of the journey 🇪🇺 The legislative process in the #EU is essential for fair decision-making. Key institutions involved are the European Parliament, the Council of the European Union, and the European Commission. There are three main types of binding legislative acts in the EU: regulations, directives, and decisions. Regulations are applicable in all EU member states, directives set goals for member states, and decisions apply to specific individuals/groups. The process starts with a proposal from the European Commission. The proposal is then forwarded to the European Parliament, the Council, National Parliaments, and, where applicable, to other relevant committees. Their opinions help shape the final proposal. Before proposing new initiatives, the European Commission studies their possible impact on the economy, society, and the environment. This ensures that #EUPolicies are thoroughly reviewed and adopted. Both the European Parliament and the Council initiate an internal discussion on the Commission proposal, which should result in a joint opinion. In the European Parliament, a rapporteur is assigned to prepare a report on the proposal. Each political group also chooses a parliamentarian to monitor the work of the rapporteur and prepare the group’s position. The committee’s report, amending the Commission’s proposal and the amendments proposed by other committees, are then debated and voted on a plenary session. Simultaneously, the Council discusses the proposal within working parties, leading to a common position. The process in the Parliament takes 13-15 months, while the Council's process takes 24-31 months on average. Informal meetings (called trilogues) often take place to mediate and adjust amendments for a compromise. Trilogues are a crucial part of the EU legislative process and a vital step towards consensus! The Council and the Parliament must approve the proposed law during the first or second reading. If they can't agree on a complete set of amendments, a second reading takes place. After the Council has formally adopted its position at first reading, it is sent to the Parliament, which has 4 months’ time to react. If the EU Parliament and the Council still can't reach an agreement after the second reading, a conciliation committee is established to agree on a joint text. If both institutions accept it during the third reading, the legislative act is adopted. The procedure for the second reading generally follows the same rules and practices of the first reading, with the difference that the text to be amended is the Council's position at the first reading and not the Commission’s proposal. #CryptoRegulation (Continues in the comments)