EU's MiCA Framework Sets Precedent for US Crypto Regulation
Europe's Markets in Crypto-Assets Regulation (MiCA) framework has set a precedent for future U.S. crypto regulation, according to Maria Golenkov. MiCA, which was implemented in Europe through 2024 and enforced since then, requires firms offering crypto services like custody, advisory, or exchange to obtain a license and have a regulator watching their activities.
The framework also mandates client asset segregation, independent audits, and real-time monitoring, as well as capital and transparency requirements. Companies must explain risks to clients in plain language, not legalese.
Golenkov warns that without these controls, the consequences can be ugly, citing examples of Galois Capital's 50% loss on FTX, which wasn't a qualified custodian, and Binance's enforcement for improper asset segregation and inadequate risk disclosures.
The U.S. regulatory landscape is currently fragmented across multiple agencies, with no unified vision or master playbook. However, the SEC and CFTC have issued joint statements clarifying that registered exchanges can facilitate trading of certain spot crypto products and published guidance on which crypto assets are securities and how stablecoins fit in.