Europe Surges Ahead with Regulatory Clarity
While President Trump courts crypto headlines, the real money is heading elsewhere. Europe’s MiCA framework is rapidly attracting crypto trading flows, leaving the U.S. trailing in both retail activity and institutional confidence. According to Paybis co-founder Konstantins Vasilenko, EU-based trading volumes surged 70% in Q1 2025, coinciding with MiCA's launch.
In sharp contrast, U.S. crypto activity is cooling off. Paybis data shows a noticeable dip in American user engagement, while Coinbase’s retail volume has dropped to just 18% of total trades, down from 40% in 2021. Robinhood also posted a 35% crypto trading decline in early 2025.
MiCA Brings Uniform Rules and Investor Confidence
MiCA’s unified licensing model is proving to be a game-changer. The regulation lets firms passport a single license across all EU states, giving investors consistent protections no matter where they live.
MiCA also tightens the leash on stablecoins, requiring 1:1 reserves, audits, and asset segregation. It mirrors MiFID investor protections, with cooling-off periods, fee transparency, and clear risk disclosures—features still sorely missing in the U.S.
As a result, firms like OKX, Crypto.com, Bybit, and Coinbase have already secured licenses under MiCA. Coinbase’s new license from Luxembourg’s regulator is a clear nod to the platform's pivot toward the EU market.
The U.S. Is Still Lost in Legal Fog
Despite Trump’s pro-crypto tone, the U.S. remains mired in confusion. There's still no national crypto law, and platforms are navigating a state-by-state mess. Regulatory threats like SEC lawsuits, token delistings, and staking crackdowns are eroding user trust.
Even the GENIUS Act, which could offer a U.S. equivalent to MiCA, remains stalled in Congress. Without sweeping reform, America risks falling further behind in the crypto race.
France and Germany Lead Europe’s Crypto Charge
France has emerged as a top crypto destination, thanks to early regulation via the 2019 PACTE law. Paybis reported a 175% spike in French user activity, driven by clear AML guidelines, regulatory support, and fintech hubs like Station F.
Meanwhile, Germany’s Deutsche Boerse is preparing to launch institutional crypto settlement through Clearstream. The Netherlands continues to impress with its strong payment infrastructure, and Lithuania is drawing attention for its compliance ops.
Could GENIUS Revive the U.S. Market?
There's still hope for the U.S. The GENIUS Act, currently inching through Congress, could finally offer clear definitions for stablecoins and federal licensing. If passed by year-end, it might restore American competitiveness in the crypto space.
But for now, Europe owns the momentum. Clear rules, coordinated policy, and investor protections are drawing capital, companies, and confidence to the EU—while the U.S. waits for a plan that hasn't arrived.
