Since MiCA was introduced in the EU and a change in US policy under President Trump, both regions have made progress in crypto legislation with different approaches. The EU took the lead by establishing a comprehensive regulatory framework for crypto-assets, while the US is catching up with more resources and a larger user base.

Manouk Termaaten, CEO of Vertical Studio AI, and Erwin Voloder, Head of Policy at the European Blockchain Association, discussed with BeInCrypto the leadership shown by the EU and the US in crypto legislation and who will set the pace for global regulation.

The EU's implementation of the Markets in Crypto-Assets (MiCA) regulation in December 2024 marked the first time a jurisdiction created a full regulatory structure for crypto-assets covering all member nations. Companies like Standard Chartered, MoonPay, BitStaete, Crypto.com, and OKX have obtained licenses.

In contrast, the US lagged behind, focusing on gaining approval from the US Securities and Exchange Commission (SEC) instead of pushing for comprehensive crypto legislation. The Biden administration faced challenges in this respect.

Under Trump, the US has shifted focus to create a predictable environment for crypto innovation through clear regulations. It aims to maintain innovation within the US to secure global leadership.

The US's recent approach has rolled back regulations from the Biden era, emphasizing a pro-innovation stance. Task forces have been formed to establish detailed regulatory frameworks, including for stablecoins and crypto asset classification guidelines.

In contrast, the EU's MiCA framework provides a unified regulatory structure for crypto-assets, emphasizing financial stability and consumer protection. The US is more focused on private sector innovation and opposes Central Bank Digital Currencies (CBDCs).

The US aims to prioritize stablecoins to strengthen the dominance of the US dollar. The EU's MiCA compliance involves significant financial burdens for companies, whereas the US offers a more flexible regulatory environment for innovation.

The contrasting approaches of the EU and the US reveal different visions for the future of digital finance. While the EU has been at the forefront with MiCA, the US could surpass Europe by fostering innovation through a more adaptable regulatory environment.

Overall, the US shows potential to lead in crypto innovation due to its flexibility, strong capital markets, and vast user base, provided it can deliver clear and supportive legislation.