A Shifting Global Crypto Landscape
The global crypto industry is undergoing a seismic transformation, with Europe rapidly gaining momentum as a regulated safe haven for blockchain innovation. Following the rollout of the MiCA (Markets in Crypto-Assets Regulation) framework in early 2025, European platforms have seen a significant rise in trading activity, while the United States is experiencing a noticeable slowdown.
According to ForkLog, this divergence in growth trends is raising important questions: Is Europe poised to overtake the US as the global leader in crypto? Or is this just a temporary swing in regulatory tides?
MiCA’s Ripple Effect: Confidence Fuels Growth in Europe
The MiCA regulation, which officially opened licensing on January 1, 2025, has already begun reshaping the European crypto landscape. Konstantins Vasilenko, co-founder of Paybis, noted that trading volume in the EU jumped by 70% in Q1 2025, despite the number of transactions remaining stable. This, he says, indicates that larger, more calculated investments are entering the European market.
Crypto giants like Coinbase, OKX, and Gemini have already secured licenses under MiCA, further validating Europe’s emerging dominance. France, in particular, has surged ahead with a 175% increase in crypto activity, thanks to the earlier adoption of the PACTE law, which laid the groundwork for AML-compliant exchanges.
US Crypto Market Faces Regulatory Confusion
Meanwhile, across the Atlantic, regulatory ambiguity continues to stifle growth. Despite pro-crypto remarks from President Donald Trump, the US still lacks a comprehensive federal crypto law. Companies must navigate a complex, state-by-state licensing model, compounded by SEC lawsuits and abrupt token delistings.
Vasilenko emphasized that this regulatory fog is eroding confidence among investors and users alike.
However, hope may be on the horizon. The proposed GENIUS Act aims to introduce structured regulation—particularly for stablecoins—and could mark a turning point for US crypto policy.
The French Advantage and the End of the “Single Hub” Era
France’s early adoption of clear crypto regulations has positioned it as a regional leader. But Vasilenko believes the future of European crypto won’t center on a single country. Instead, operations will likely be decentralized across the EU, operating “under the MiCA umbrella,” offering companies passporting benefits after a single licensing approval.
The US Isn’t Out of the Game Yet
Despite Europe’s head start, not all experts believe the US is losing its edge. According to Alexander Peresichan, CEO of Tehnobit, America is currently laying the foundation for business-friendly crypto laws that could attract a wave of innovation.
He also believes that the GENIUS Act, though focused specifically on stablecoins, may offer similar clarity for American firms as MiCA has for Europe. The involvement of institutions like JPMorgan, which is exploring its own stablecoin, signals serious intent from the US financial sector.
A Matter of Diversification, Not Exodus
According to Ryan Li, Chief Analyst at Bitget Research, the crypto industry’s interest in Europe is not a rejection of the US but rather a diversification strategy. Thanks to MiCA’s passporting mechanism, a single approval grants access to the entire European Economic Area, a luxury not currently available in the United States.
However, Li stressed that the US still holds the deepest capital markets, richest venture funds, and most advanced infrastructure. In his view, Europe is becoming a co-leader, not a replacement.
Li also warned against directly comparing MiCA and the GENIUS Act. MiCA aims to regulate the entire crypto ecosystem, while the GENIUS Act primarily focuses on stablecoins and dollar-backed innovation.
Conclusion: A New Multipolar Crypto World?
The race for crypto leadership isn’t a zero-sum game. While Europe has surged ahead in terms of regulatory clarity and institutional participation, the US remains a powerhouse of capital, innovation, and long-term potential.
Rather than one side “winning,” the global crypto industry seems headed toward a multipolar future, with the EU and US complementing each other in shaping the next phase of blockchain and Web3 evolution.
For investors, builders, and policymakers alike, now is the time to watch both regions closely, as they redefine what it means to lead in the crypto space.
