Analysis: MiCA framework boosts European crypto market growth, while US retail trading cools

Planet Daily News: According to data from Paybis co-founder Konstantins Vasilenko, EU customer transaction volume increased by 70% quarter-on-quarter in the first quarter of 2025 after the MiCA regulation took effect. During the same period, retail trading activity in the US market showed a downward trend. Kaiko estimates that currently only 18% of Coinbase's spot trading volume comes from retail investors, down from 40% in 2021. Robinhood's crypto trading volume also declined by 35% in the first quarter of 2025. Vasilenko stated that MiCA opened its licensing window on January 1, 2025, with newly injected funds being larger and more purposeful. The MiCA framework introduced a single licensing system for all EU member states and imposed strict regulations on stablecoins, requiring 1:1 reserves, audits, and asset segregation, thereby enhancing investor confidence. In contrast, ongoing regulatory uncertainty in the US has hindered market development. Despite supportive statements about cryptocurrencies from former President Trump and his government members, comprehensive federal crypto legislation has not yet been enacted. (Cointelegraph)