Analysis: MiCA framework boosts European crypto market growth, while U.S. retail trading cools

Odaily News According to Paybis co-founder Konstantins Vasilenko, in the first quarter of 2025, after the MiCA regulation came into effect, trading volume among EU customers increased by 70% month-on-month. During the same period, retail trading activity in the US market showed a downward trend. Kaiko estimates that only 18% of Coinbase's spot trading volume currently comes from retail investors, down from 40% in 2021. Robinhood's crypto trading volume also fell by 35% in the first quarter of 2025.
Vasilenko said that MiCA will open the licensing window on January 1, 2025, and the newly injected funds will be larger and more purposeful. The MiCA framework introduces a single licensing system for all EU member states and imposes strict regulations on stablecoins, requiring 1:1 reserves, audits, and asset segregation, thereby enhancing investor confidence.
In contrast, continued regulatory uncertainty in the United States has hampered market development. Despite pro-cryptocurrency rhetoric from U.S. President Trump and members of his administration, comprehensive federal crypto legislation has yet to be introduced. (Cointelegraph)