EU Crypto Rules Flawed, Leaving Room for Bypassing

The European Union's (EU) new crypto regulations, known as MiCA, took effect on July 1. However, despite their aim to regulate and protect everyday investors from scams, only about one in five of Europe's 1,200 registered crypto companies secured a license.

Big brands like Coinbase successfully cleared the bar, but giants like Binance got kicked out due to regulatory issues. Meanwhile, Washington rewrote its own rules with the GENIUS Act, signed by President Donald Trump last summer. This act aims to back stablecoins, digital currencies pegged to the US dollar.

But here's the plot twist: EU diplomats admit that their current rules fail to regulate companies outside Europe, allowing them to bypass these regulations. As a result, the EU is set to revisit its crypto rules in 2027 to address this issue and expand the framework to cover emerging technologies like tokenization.

Stablecoins have become increasingly significant, with total transaction volumes surging by 72% in 2025 to $33 trillion. Trump's GENIUS Act provides a regulatory framework for these assets, which are mostly backed by the US dollar. This move aims to strengthen the US currency through this new technology.