Ripple executive Susan Friedman recently lauded the European Union's progressive approach to cryptocurrency regulation as the EU Parliament passed the Markets in Crypto-Assets (MiCA) legislation.
In her tweet, Friedman expressed her enthusiasm for the EU's sensible regulatory measures in comparison to the United States' focus on enforcement.
She emphasized Ripple's eagerness to build and grow in the European market, joining the ranks of other prominent crypto firms such as Binance, Coinbase, and Kraken in welcoming the new legislation.
MiCA is poised to provide regulatory clarity and harmonization for crypto firms operating across Europe. With 517 MEPs voting in favor and only 38 against, the legislation now moves to its final formal vote in the Council of the EU on May 16.Upon publication in the Official Journal of the EU, the regulation will take effect for stablecoin issuers in June 2024 and for all other crypto-asset service providers in December 2024, according to Circle's Patrick Hansen.
The EU's main objectives with MiCA are to protect consumers engaging in crypto transactions, create regulatory harmonization to allow companies to operate on an EU-wide basis, provide legal certainty for companies and institutions entering the space, and establish a leading role in global crypto regulation. This comprehensive framework offers companies a clear rulebook for various services, including token issuance, exchange, and custody, enabling fair competition and innovation.
With the passage of MiCA, the EU is set to become the next global hub for crypto projects due to regulatory clarity and its large single market of 450 million consumers.