Europe Is Taking The Lead Over The United States In Crypto Regulation
Who said that Europe, champion of paperwork and bureaucracy, could not compete with the United States, the so-called cradle of innovation? In this global war to regulate cryptos, an unexpected duel emerges. On one side, the USA, energized by Trump and his bitcoin-friendly clique. On the other, a Europe that was said to be lagging behind… but has just brought out the heavy artillery with MiCA. What if, this time, European regulation decisively outpaced American boldness?
In brief
- MiCA attracts major crypto platforms with a single license valid throughout the European Union.
- Crypto volume rose by 70% in Europe while it falls in the United States.
- The GENIUS Act strongly regulates stablecoins with audits, mandatory reserves, and interest payment bans.
MiCA wins hearts, crypto rushes in: Europe attracts heavy volumes
It has been said that MiCA is not enough, yet it gives wings to investors. January 2025. As American traders scale back, the European Union takes off. Paybis, a London-based platform, announces +70% volumes in Europe in Q1. And the number of transactions remains stable. This implies one thing: the money staked is heavier, more strategic.
Konstantins Vasilenko (Paybis) clearly states: “The timing is hard to ignore.” While the United States sinks into legal confusion, Europe rolls out the regulatory red carpet. And the giants respond: OKX, Bybit, Crypto.com, then Coinbase and Gemini rushed to secure their MiCA licenses.
France, for its part, acts as a locomotive with +175% volume, boosted by its fintech and its PACTE. Not bad for an old continent long considered too slow. Thanks to MiCA, cryptos find a land of clarity there. Judging by the size of the stakes, it’s not small investors moving, but institutional players.
Stablecoins: America wants to reign… but steers off the road
The GENIUS Act, passed by the US Senate on June 17, 2025, sounds like a strong response. But in wanting to regulate quickly, Trump and his administration have placed a cage around stablecoins. This law requires 1:1 reserves, monthly audits, and bans interest payments to holders. And this is causing issues.
Michel Khazzaka, crypto analyst, bluntly criticizes:
You get a token from your own money that you can only use to pay. They take real money, invest it, and keep the returns.
98% of Circle’s revenues in 2024 came from interest on reserves.
Narratively, America tries to anchor the dollar in the digital age, while controlling every gear. Meanwhile, MiCA allows European issuers to operate anywhere in Europe. Result: a more fluid crypto economy, and less restricted but more dynamic stablecoins. GENIUS aims to reassure, MiCA frees. And the market chooses.
The standards war fragments stablecoins… and Bitcoin advances
On the international front, it’s each to their own law. The UK is preparing its rules. Japan is loosening reserve management. Hong Kong requires a local license to distribute stablecoins. This patchwork makes interoperability difficult, even illusory. Result? A global fragmentation threatening liquidity.
Tim (@Tim38300817) sums it up: “You can’t build around rules without understanding them deeply.” Platforms are forced to make choices. Some stablecoins are banned from Europe. Others become inaccessible to Asian investors.
And in this regulatory fog, bitcoin moves forward, undeterred. Michel Khazzaka puts it plainly: “In a world of restricted assets, the only free money… might well be the one that no one can stop“. Permissionless, borderless, BTC is reborn as the shelter value for disillusioned stablecoin holders.
Key figures to remember:
- +70% crypto volume in Europe on Paybis in Q1 2025;
- 35% drop in crypto volumes on Robinhood;
- Only 18% of Coinbase’s activity still comes from retail investors;
- 1.68 billion $ of interest income for Circle in 2024;
- 98% of this turnover comes from interest on reserves.
Trump stepped on the gas. With GENIUS, he wanted to act fast… very fast. But in this brutal acceleration, some see a maneuver to save the dollar, facing a world that is gradually abandoning it. Ironically, Europe, with its well-oiled rules, is moving faster. The dice are rolled again.
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La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.