Europe Takes the Lead in Crypto as U.S. Stalls on Regulation

Europe is emerging as the new global crypto hub, propelled by its MiCA regulatory framework, which is attracting investors and platforms alike.

With clear rules now in place, digital asset activity across the continent has surged, while the U.S. struggles with lingering legal uncertainty despite pro-crypto rhetoric from its leadership.

Crypto exchange Paybis reported a 70% increase in trading volume from European users in Q1 2025, right after MiCA came into effect. In contrast, American activity has slowed, with platforms like Robinhood seeing crypto volumes tumble by over a third and retail interest on Coinbase dropping sharply since 2021.

The main draw for companies and users is MiCA’s passporting regime—once a crypto firm secures approval in one EU state, it can operate across the bloc. This uniform licensing has led firms like Coinbase, OKX, and Crypto.com to obtain authorization under the framework, confident that their services now have continent-wide coverage.

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Investors are responding positively. France, with its existing crypto regulation under the PACTE law, has seen activity spike over 170%, while Germany is boosting its institutional infrastructure. Other countries like the Netherlands and Lithuania are also carving out niches under MiCA, from payments to compliance.

Meanwhile, U.S. firms face ongoing confusion. Fragmented licensing requirements, unresolved lawsuits, and unclear federal rules are making the market difficult to navigate. Even with President Trump’s supportive stance, the regulatory vacuum remains a deterrent. A pending bill, the GENIUS Act, could shift that narrative by introducing national rules and stablecoin definitions—possibly unlocking the same kind of momentum Europe is now enjoying.

Alexander Stefanov

With over 8 years of experience in the cryptocurrency and blockchain industry, Alexander is a seasoned content creator and market analyst dedicated to making digital assets more accessible and understandable. He specializes in breaking down complex crypto trends, analyzing market movements, and producing insightful content aimed at educating both newcomers and seasoned investors. Alexander has built a reputation for delivering timely and accurate analysis, while keeping a close eye on regulatory developments, emerging technologies, and macroeconomic trends that shape the future of digital finance. His work is rooted in a passion for innovation and a firm belief that widespread education is key to accelerating global crypto adoption.