Coinbase and Gemini Eye EU Expansion with Incoming MiCA Approvals

MiCA, which came into effect earlier this year, aims to provide a harmonized regulatory framework for crypto assets across all 27 EU member states. By setting clear standards for transparency, consumer protection, and operational requirements, the regulation seeks to foster innovation while ensuring financial stability.

Malta has already granted licenses to platforms including OKX and Crypto.com under the EU’s new MiCA framework. Gemini, the U.S.-based exchange founded by the Winklevoss twins, is in the final stages of obtaining approval from Maltese regulators, according to a Reuters report. Meanwhile, Luxembourg is expected to approve Coinbase’s license application in the coming weeks, reinforcing the company's expansion strategy within the European Union.

As MiCA takes effect, countries like France are positioning themselves as key hubs for crypto firms seeking regulatory clarity. Circle, the issuer of USDC, recently secured approval to operate under MiCA in France—highlighting the country’s growing appeal as a launchpad for compliant digital asset services across the EU.

While MiCA's implementation is a significant step toward regulatory clarity, it has also sparked debates among EU regulators. Some officials have expressed concerns about the speed and rigor of licensing processes in smaller member states like Malta. The European Securities and Markets Authority (ESMA) is reportedly scrutinizing Malta's licensing procedures to ensure they meet the bloc's standards and prevent a "race to the bottom" in regulatory oversight.

While the EU’s MiCA framework offers regulatory clarity across member states, the U.S. has taken a different but increasingly constructive path. Since the appointment of SEC Chair Paul Atkins, the agency has shifted from an enforcement-driven strategy to a more collaborative, rules-based approach—easing uncertainty for crypto firms and fostering responsible innovation.

Brian Armstrong, CEO of Coinbase, has been vocal about the need for clearer regulations in the U.S. In a 2023 blog post, he pointed to Europe’s proactive stance on crypto regulation—particularly the implementation of MiCA—as a model of effective policymaking.

Recent legislative efforts, such as the Financial Innovation and Technology for the 21st Century Act (FIT21), have gained traction in Congress. While still awaiting Senate approval, the bill outlines clearer roles for the SEC and CFTC and has been praised by industry groups for offering a structured approach to digital asset regulation.

In the United States, calls for regulatory clarity have grown louder across the digital asset industry, with stakeholders urging lawmakers to take the lead in crafting comprehensive crypto legislation. The shift in tone from regulators, particularly under new SEC leadership, has been welcomed by market participants seeking a more stable policy environment. Industry groups have emphasized that a transparent, rules-based framework is essential not only to safeguard investors but also to keep innovation and capital within U.S. borders.

The EU's implementation of MiCA positions it as a potential global standard for crypto regulation. By providing legal certainty and a unified market, Europe is attracting crypto firms seeking a stable regulatory environment. This shift could influence other jurisdictions to adopt similar frameworks to remain competitive in the rapidly evolving digital asset landscape.

As the EU continues to refine its regulatory approach and the U.S. grapples with legislative challenges, the divergence in crypto regulation between the two regions may have lasting impacts on the global positioning of crypto firms and the broader digital economy.