Coin WorldSunday, Jun 22, 2025 2:42 pm ET

2min read

Crypto firms are increasingly turning their attention to the European Union's Markets in Crypto-Assets (MiCA) regulatory framework, despite former U.S. President Donald Trump's vocal support for the crypto industry. The shift is driven by the perception that the U.S. regulatory environment is less favorable and more uncertain compared to the comprehensive and clear guidelines offered by MiCA.

The MiCA framework, which is set to be fully implemented by 2024, aims to provide a harmonized regulatory environment for crypto assets across the EU. This includes clear guidelines on issuance, trading, and custody of crypto assets, as well as provisions for consumer protection and market integrity. The framework has been praised for its balanced approach, which seeks to foster innovation while mitigating risks.

In contrast, the U.S. regulatory landscape for crypto assets remains fragmented and uncertain. The absence of a comprehensive regulatory framework has led to a situation where firms are unsure of how to comply with existing laws and regulations. This uncertainty has pushed many crypto firms to seek more stable and predictable regulatory environments elsewhere.

The shift towards MiCA is not just about regulatory clarity; it is also about market access. The EU is one of the largest economic blocs in the world, and gaining access to its market can provide significant opportunities for growth. By complying with MiCA, crypto firms can operate across the EU without having to navigate different regulatory regimes in each member state. This "passporting" feature is a cornerstone of the law, allowing firms to serve the entire EU market with a single approval.

Major exchanges such as OKX, Crypto.com, Bybit, and Coinbase have already been issued MiCA licenses, enabling them to serve the entire EU market with a single approval. This move highlights the growing confidence in the MiCA framework and its potential to attract more crypto firms to the EU.

The move towards MiCA is also a reflection of the broader trend of crypto firms seeking regulatory certainty. As the industry matures, firms are increasingly looking for clear guidelines that can help them operate legally and sustainably. The EU's approach to regulation, which emphasizes consumer protection and market integrity, is seen as a model that can be replicated in other jurisdictions.

In Europe, the number of trades has remained stable, but the value per trade has increased, indicating more aggressive, institutional-style investing. This shift in user behavior and volume coincides with the implementation of MiCA, suggesting that the regulatory framework is having a positive impact on the market.

France and Germany are leading the way in Europe, with France seeing a 175% surge in activity due to early regulation under the PACTE law and fintech hubs like Station F. Germany, on the other hand, is focusing on institutional building, with Deutsche Boerse’s Clearstream developing crypto settlement. This decentralized operational approach under MiCA is attracting more firms to the region.

The shift towards MiCA is a significant development in the global crypto industry. It highlights the importance of regulatory clarity and the need for a harmonized approach to regulation. As more firms turn to MiCA, it is likely that other jurisdictions will take note and consider adopting similar frameworks. This could lead to a more stable and predictable regulatory environment for the crypto industry, which is essential for its long-term growth and sustainability.

In the U.S., the GENIUS Act, pending in Congress, could potentially restore retail demand if passed by year-end. The act aims to provide a national regime of licensing and clear rules for stablecoins, which could address some of the regulatory uncertainties currently faced by crypto firms in the U.S.