Polygon Wants EU to Amend Data Act to ‘Protect’ Smart Contracts

Polygon Labs offered its thoughts on the Data Act in an open letter to EU lawmakers.

A robot with purple eyes and Polygon logo o ears stands in front of a statue
  • Polygon Labs sent an open letter to EU lawmakers asking them to consider its amendments in Article 30 of the Data Act.
  • The developer of the Polygon blockchain said that the act should apply only to permissioned systems, not decentralized permissionless ones.
  • Polygon Labs’ amendments also exclude software and software developers.

If there’s one thing the current crypto bear market has shown, it’s that regulators are coming, whether the industry likes it or not. That’s why it’s essential to work with regulators, not against them.

One example of collaboration between regulators and crypto industry players is Polygon’s recent open letter to EU lawmakers regarding the Data Act and how it applies to smart contracts.

Polygon Urges EU to ‘Protect’ Permissionless Smart Contracts

Polygon Labs, the development team behind the Ethereum Layer-2 scaling solution Polygon, sent an open letter to members of the European Parliament, the European Commission, and the European Council on Tuesday.


In it, Polygon Labs and crypto wallet company Ledger argue that Article 30 of the Data Act should be amended to clarify that it applies only to permissioned smart contracts and not to decentralized, permissionless ones.

Article 30 in the Data Act states that smart contracts should be required to have a “safe termination or interruption” mechanism integrated, also known as a kill switch. According to Polygon Labs, imposing this requirement can result in “negative consequences […] to permissionless systems.”

Instead, Polygon Labs said that the Data Act should exclude the mention of software developers and apply only to permissioned smart contracts and enterprises.


Polygon Labs argued that considering its amendments would “ensure” that the Data Act spares permissionless smart contracts.

“We respectfully request that you consider the proposed revisions to Art. 30 discussed below to ensure that this new law does not inadvertently capture open, transparent, and permissionless parts of emerging blockchain technology.”

The Data Act is part of the Markets in Crypto-Assets (MiCA) framework, scheduled for a final vote on April 19.

On the Flipside

  • EU lawmakers aren’t required to respond to Polygon Labs’ letter or implement the amendments described.

Why You Should Care

The crypto industry would win if EU lawmakers accepted Polygon Labs’ amendments. At the same time, multiple unknown and gray areas in the MiCA legislation still need to be addressed.

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This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Arturas Skur

Arturas Skur is a cryptocurrency news reporter at DailyCoin who covers Web 3.0 domains, DeFi, and Ethereum Layer-2s. With over five years of experience in journalism and public relations, Arturas brings his critical thinking and analytical abilities to deliver insightful news stories. In his free time, he enjoys hiking, playing with his dog, and reading.