US Crypto Regulations vs. MiCA Rules: Are Global Standards Underway?

February 6, 2025 – The global cryptocurrency market is evolving rapidly, with the United States and the European Union leading efforts to establish regulations that could set global standards for digital assets. Under President Donald Trump’s administration, significant steps are being taken, including the cancellation of the SEC’s Staff Accounting Bulletin (SAB) 121, which would have required crypto assets to be treated as liabilities. Trump’s executive order outlines a roadmap for regulating digital assets, focusing on key principles such as open networks, mining, staking, and self-custody.

In Europe, the Markets in Crypto-Assets (MiCA) regulation is transforming the region’s crypto landscape by providing clarity on stablecoins, exchanges, and compliance. This regulation has enabled exchanges to operate across the 30 countries of the European Economic Area (EEA), simplifying access to crypto within the region. MiCA has also resulted in the delisting of non-compliant stablecoins, raising the regulatory bar for the industry.

However, some experts argue that MiCA may not become a global standard, as different regions may have differing regulatory approaches. While MiCA provides clarity, particularly regarding stablecoins, it also leaves decentralized finance (DeFi) largely unregulated, potentially creating loopholes for bad actors. Legal experts suggest that while MiCA could serve as a model for other jurisdictions, its one-size-fits-all approach may not be universally applicable.

The regulation of stablecoins continues to be a critical area of focus. In the U.S., Senator Bill Hagerty’s stablecoin bill is working toward creating a pro-growth regulatory framework. In contrast, MiCA enforces stricter requirements, with exchanges like Circle obtaining licenses to operate within MiCA’s framework. However, experts caution that enforcing stablecoin regulations on a global scale remains challenging.

As the U.S. and the EU continue to refine their crypto regulations, the industry is closely monitoring which framework will best foster innovation while ensuring consumer protection. MiCA’s strict compliance requirements may stifle smaller projects, pushing them to jurisdictions with more lenient regulations. It remains to be seen whether the U.S. or MiCA’s framework will dominate the global crypto landscape, with investors eagerly awaiting further regulatory clarity in the U.S.

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