How PayPal And Tron Might Have Influenced European Crypto Policy

Ahead of the EU’s Markets in Crypto-Assets regulation, the article examines whether research commissioned by PayPal and proof-of-stake networks may have influenced European policy. It focuses on the Crypto Carbon Research Institute, founded in 2021, which in 2022 produced reports on proof-of-stake networks funded by Avalanche, TRON, ConsenSys and Polygon, and a joint report with South Pole developed in consultation with PayPal.

In 2023, the European Securities and Markets Authority consulted on sustainability disclosures for crypto assets, and the CCRI supported the proposed standards. Alex de Vries said the disclosures would apply whether tokens used proof-of-work or proof-of-stake, and criticised CCRI’s reliance on contract research. Lena Klaaßen of CCRI said its mission was to provide transparency on environmental impact. Tron, Polygon, Avalanche, ConsenSys and South Pole did not respond to requests for comment, and PayPal did not respond further after asking for more information.