The US’s newfound support for cryptocurrencies may undermine Europe’s incoming rules on digital assets. Companies are likely to overlook the continent in favor of a friendlier US market. The EU’s new landmark rules, known as the Markets in Crypto-Assets Regulation (MiCA), will set guardrails for the public. These rules will regulate the issuance of crypto coins and digital asset services.
The EU’s MiCA rules may be seen as stringent, leading to a migration of crypto-related activities away from Europe. In contrast, a crypto-friendly US administration is expected to exert a strong pull. The recent shift in US policy has propelled bitcoin to a record high, and retail and institutional investors have warmed to the pledge to end the tough regulatory crackdown. Crypto companies that dropped US services are planning to return.
