Polygon Labs, the central company behind the development of Ethereum’s layer 2 scaling solution Polygon, has called on policymakers in the European Union to “clarify” the scope and intent of legislation targeting smart contracts.
In an open letter to members of the European Parliament, European Council and European Commission on April 17, Polygon Labs proposed amending Article 30 of the Data Act to apply to permission-based smart contracts owned and operated by a single company system. "Enterprise", not Unlicensed under the current wording. The platform said that hardware wallet developer Ledger has also signed on to require the legislation to better reflect its intentions. “Polygon Labs is interested in this matter as we seek to ensure the growth and responsible development of blockchain-based permissionless systems around the world,” the letter said. “We respectfully request that you consider the proposed amendments to Art. 30 to ensure that this new law does not inadvertently capture the open, transparent, and permissionless aspects of emerging blockchain technology.”
Article 30 of the version of the data bill passed by the European Parliament in March details “essential requirements for smart contracts regarding data sharing”. Polygon Labs claims that if the bill passes without amendments to clarify the nature, if any, of the parties operating smart contracts, the legislation “would be unenforceable for open, permissionless, and decentralized smart contract applications.” , and will significantly inhibit innovation and economic growth in the European Union." Other experts have raised similar concerns about a data bill that could affect how regulators handle smart contracts. Michael Lewellen, head of solution architecture at OpenZeppelin, told Cointelegraph in March that the wording that allows a smart contract “kill switch” “breaks immutability guarantees and introduces points of failure.”
Polygon called for the data bill to be “aligned” with the cryptoasset market framework, which is scheduled for a final vote on April 19 after extensive negotiations in the European Parliament, European Council and European Commission. The data bill is likely to face similar treatment from EU policymakers before reaching its final form in law, allowing time for Polygon Labs' request to be considered.
