Analysis: MiCA Framework Fuels Growth in European Crypto Market as U.S. Retail Trading Slows

Paybis co-founder Konstantins Vasilenko stated that in the first quarter of 2025, following the implementation of the MiCA regulations, trading volume from EU clients increased by 70% quarter-on-quarter. During the same period, retail trading activity in the US market showed a downward trend. According to Kaiko estimates, only 18% of Coinbase’s current spot trading volume comes from retail investors, down from 40% in 2021. Robinhood’s crypto trading volume also dropped by 35% in the first quarter of 2025. Vasilenko noted that MiCA opened its licensing window on January 1, 2025, and the newly injected capital is larger in scale and more purpose-driven. The MiCA framework introduces a unified licensing regime for all EU member states and imposes strict requirements on stablecoins, including 1:1 reserves, audits, and asset segregation, thereby boosting investor confidence. In contrast, ongoing regulatory uncertainty in the US has hindered market development. Although US President Trump and members of his administration have made pro-crypto statements, comprehensive federal crypto legislation has yet to be introduced.