The European Parliament has given its approval to the Data Bill, a contentious piece of legislation that encompasses a provision mandating the termination of smart contracts. The bill secured passage with 481 votes in favor and 31 against, as stated in a press release on November 9. For it to become law, the bill now requires approval from the European Council and the heads of state from the 27 member states of the European Union.
One of the key features of the approved Data Bill is the stipulation that smart contracts must be subject to interruption and termination. Additionally, the bill incorporates controls enabling the reset or cessation of the contract's functionality. The primary objective of the Data Bill is to afford users access to the data generated by smart devices. The European Commission contends that approximately 80% of such collected data is never utilized. However, critics have expressed reservations about the smart contract provisions, deeming the definition too broad and lacking clarity on the circumstances triggering disruption or termination.
Concerns about the Data Bill's impact on smart contracts were also raised in an open letter sent by the EU's blockchain advocacy body in June. The letter, signed by numerous cryptocurrency companies, warned that the legislation could potentially render smart contracts utilizing data from public blockchains, like Ethereum, illegal. In response, the European Commission asserted that the Data Bill is unrelated to blockchain and dismissed the apprehensions that it could criminalize smart contracts, deeming such concerns unfounded. The bill's approval marks a significant step in its legislative journey within the European Union.
