The Global Crypto Regulation Race in 2025: U.S. Clarity vs. European Momentum
A Tale of Two Strategies and What It Means for Business
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As stablecoins move from crypto niche to financial infrastructure, the U.S. and EU are setting the pace, each in their own way. Here's a breakdown of what’s happening and why it matters for builders, investors, and policymakers.
U.S. Makes Its Move: Clear Rules, Big Players, Real Capital
The U.S. passed the GENIUS Act on June 17, 2025 (Senate vote: 68–30), establishing the country’s first federal framework for payment stablecoins. It signals a clear intention: make the U.S. a stablecoin powerhouse.
Key features of the law:
Mandatory 1:1 backing with cash or U.S. Treasuries
Monthly public audits and reserve disclosures
Issuers limited to licensed banks, credit unions, or regulated non-banks
Ban on Congressional profiteering from issuance (with exemptions for the President and VP)
2025 corporate impact:
Amazon, Visa, Walmart, and JPMorgan are already preparing pilots and integrations.
Circle and Tether gain regulatory certainty for expanding payment use cases.
New entrants like World Liberty Financial (Trump-affiliated) are eyeing issuance under the new framework.
Europe’s Counterweight: MiCA Turns Clarity into Market Share
While the U.S. creates a legal foundation, Europe is turning its regulations into real activity. The Markets in Crypto-Assets Regulation (MiCA), fully in effect since late 2024, is reshaping how crypto operates across the EU.
2025 outcomes so far:
EU-based crypto trading volume rose 70% quarter-over-quarter in Q1
U.S. retail activity is down: Coinbase’s retail volumes dropped to 18% (from 40% in 2021); Robinhood fell 35% in Q1
Over 80% of major exchanges in the EU (e.g., Crypto.com, Bitpanda, OKX, MoonPay) are now MiCA-licensed
Euro-denominated stablecoin trading has surpassed $42B/month, with regulated offerings from Societe Generale (EURCV) and Banking Circle (EURI)
30 million MiCA-compliant wallets and over €500B in custody managed by licensed custodians
Notable national leaders:
France saw a 175% surge in crypto activity (via Paybis) in Q1 2025, aided by PACTE AML groundwork, Station F, and the proactive AMF. Crypto adoption may reach 24% of the population this year
Germany builds institutional rails, with Clearstream preparing crypto settlement services via Deutsche Börse
The Netherlands continues to excel in EU-wide crypto payment connectivity under MiCA, making it easier for startups and institutions to build compliant, real-time financial products across Europe.. As a key MiCA implementation hub, with companies like MoonPay, ZBD, BitStaete, Hidden Road, and Quantoz securing regulatory approval to offer cross-border crypto payment services, euro/dollar stablecoins, and Bitcoin Lightning-based infrastructure
In Q1 2025, EU trading volumes jumped 70% quarter-over-quarter, while U.S. retail volumes declined, Coinbase’s retail share fell to 18%, and Robinhood dropped 35% . Major exchanges like OKX, Crypto.com, and Bitpanda have all gained MiCA licenses, demonstrating widespread adoption.
A Tale of Two Strategies: Regulation vs. Execution
Comparing the U.S. and EU reveals two different approaches: the U.S. leads with high-level clarity and deep institutional buy-in; Europe leads with on-the-ground activity and unified access.
Regulation
U.S. (GENIUS Act): Federal stablecoin framework with audits and licensing
EU (MiCA)Regulatory Clarity: Unified cross-border regulation with strong investor protections
Market Momentum
U.S.: Corporate pilots (e.g., Amazon, JPMorgan, Visa, Walmart)
EU: 70% spike in crypto volumes, 30M wallets, €500B+ assets under custody
Institutional Push
U.S.: High-level support from the treasury, regulators, and large corporates
EU: Decentralized hubs backed by national regulators like AMF and Bundesbank
Stablecoin Strategy
U.S.: Focus on U.S. dollar-based stability, fintech-ready issuance route
EU: Emerging euro-backed stablecoins and pan-EU rollout (e.g., EURCV, EURI)
What It Means for Founders, Investors, and Builders
For crypto teams, the rules of the game are becoming clearer, but not the same.
In the U.S.:
The GENIUS Act offers regulatory certainty for compliant stablecoin issuance
Startups gain clear paths to banking relationships, consumer-facing products, and institutional pilots
In the EU:
MiCA simplifies scaling across 27 member states
Legal clarity boosts consumer trust and trading volumes
But questions remain around monetary sovereignty and euro stablecoin legal tender
Where you choose to build - under MiCA’s operational clarity or GENIUS’s licensing structure -can shape access to users, capital, and compliance pathways.
What to Watch Next
The regulatory race isn’t over. The next 12 months will define the pace and direction of crypto adoption across the world.
Will the U.S. House pass the GENIUS Act and move toward presidential signature?
Will Europe strengthen MiCA with digital euro enhancements or legal tender rules for euro-backed stablecoins?
How will cross-border payments evolve under these new regimes and what interoperability frameworks will emerge?
Get in front of businesses. Go from unknown to unstoppable.
We help blockchain and AI startups earn institutional trust, craft strategic positioning, unlock high-value partnerships, and drive sales.
Curious what that could look like for your project?
Final Word
2025 marks a regulatory tipping point. The U.S. is staking its position through policy clarity. Europe is gaining market share through execution. For the industry, this is the moment to align strategy with jurisdiction.
Latest Market Updates
ECB's Lagarde urges EU lawmakers to speed up digital euro law. More
Coinbase has secured a MiCA license from Luxembourg to offer crypto services across 27 countries in the European Union and will make the country its central hub in the region. More
Visa under threat from stablecoins. More
Amazon & Walmart eye stablecoin infrastructure. More
Coinbase stock surges on GENIUS Act. More
Coinbase, eyes tokenized equities. More
Kraken partners with DeFi Development (DFDV) to list the tokenized stock of its publicly traded equity on the Solana blockchain. DFDV joins the inaugural cohort of tokenized stocks on Kraken’s upcoming xStocks platform, alongside global giants like Apple, Tesla, and Nvidia. More
Deutsche Bank, Memento Blockchain and Axelar Network propose a regulated fund issuance platform, designed to accelerate the adoption and servicing of tokenised funds, stablecoins, and other real-world assets (RWAs). More
Tokenized U.S. Treasuries hit $5.6B up 500% YoY. CoinGecko’s RWA Report 2025.
Shopify is joining forces with Coinbase and Stripe to bring stablecoins to eCommerce with Coinbase Payments. More
X plans to become a WeChat-style payments, investments, and credit cards + messaging hub. More
Stripe acquired startup Privy after $1.1B Bridge deal to power over 75M crypto wallets. More
Nobitex hacked for $90M. DOJ seized $225M in scam funds. More
The largest data breach ever exposed 16B+ Apple, Google, Facebook and more credentials. More
Tether is not a stablecoin company anymore. More
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Marta