European Union (EU) lawmakers have agreed on a protocol Advance the controversial European Data Act, which has previously drawn criticism from the cryptocurrency community. EU Internal Market Commissioner Thierry Breton confirmed the deal in a tweet, calling it a “milestone in reshaping the digital space”.

The European Parliament passed the Data Bill on March 14, but negotiations between EU lawmakers on the final version of the bill have been ongoing. The bill focuses on the fair use of industrial data and removes barriers to the fair sharing of data generated by a range of data-centric services, such as the Internet of Things.

The European Parliament claims the bill will encourage greater use of data resources to train algorithms, ultimately reducing service costs. However, the bill drew harsh criticism from the crypto community due to the proposal surrounding smart contracts and their ambiguity.

The bill introduces changes to the requirements for smart contracts, including a kill switch that allows for the safe termination of smart contracts. The bill establishes smart contract rules for parties providing shareable data, including “safe termination and interruption,” and incorporates safeguards to protect trade secrets and prevent illicit data transfers.

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Many cryptocurrency proponents believe that new EU legislation will force smart contract developers to design reset possibilities to allow termination or interruption of transactions. This could limit innovation or make compliance with smart contracts in the crypto industry difficult. 

Martin Hiesboeck, Head of Research at Uphold, said: famous Earlier, smart contracts were one step closer to being regulated across the EU as part of a broader data market strategy.

Cointelegraph reached out to Breton for comment on the smart contract controversy, but did not hear back from the publication.

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