MiCA Passes in EU: Industry Leaders and Policymakers React to Key Financial Regulation

MiCA Bill Passed in EU: Industry Leaders and Policymakers React

On April 20, the European Parliament voted to pass the Markets in Crypto Assets (MiCA) bill, which aims to establish a consistent regulatory framework for crypto assets among the European Union member states. The bill’s approval comes after two delays starting in November 2022. However, a crypto-focused regulatory framework still requires approval from the European Council before final passage.

Despite this, many industry leaders and policymakers in the crypto space have reacted positively to the MiCA bill’s progress. If approved, the policy could be implemented as early as 2024.

Industry Leaders React to MiCA Bill

Several industry leaders have lauded the MiCA bill’s approval, suggesting that it could put the United States at a disadvantage for attracting crypto firms and investments. CZ, CEO of Binance, has stated that he will begin implementing changes to the exchange to comply with the potential new framework.

In addition, Coinbase tweeted that the MiCA regulation was a pivotal moment for crypto regulation and would give crypto organizations confidence to invest and grow in the region. Tyler Winklevoss expressed disappointment with US regulators, stating that while they have been busy infighting and refusing to provide clarity for the crypto industry, the European Union has taken significant steps to provide a comprehensive regulatory framework.

Policymakers React to MiCA Bill

Before the European Parliament vote, EU Commissioner for Financial Stability Mairead McGuinness praised lawmakers for being “ahead of many other jurisdictions” regarding crypto regulation. Over 500 members of parliament ended up voting in favor of the MiCA bill.

Christine Lagarde, president of the European Central Bank, has also suggested implementing a broader framework in response to the collapse of FTX, proposing a “MiCA II” in the future. The key votes for the crypto framework followed a crypto market crash and bankruptcies of high-profile firms, leading lawmakers across the globe to call for regulatory clarity.

Conclusion

The approval of the MiCA bill in the European Parliament represents a significant step towards a consistent regulatory framework for crypto assets among the European Union member states. Industry leaders and policymakers have reacted positively to the bill’s progress, suggesting that it could attract crypto firms and investments to the region while putting the United States at a disadvantage. The bill still needs approval from the European Council before final passage, but if approved, it could be implemented as early as 2024.

Key Takeaways

• The European Parliament voted to pass the MiCA bill on April 20, 2023, which aims to create a consistent regulatory framework for crypto assets among the European Union member states.
• Many industry leaders and policymakers have reacted positively to the bill’s progress, suggesting that it could attract crypto firms and investments to the region while putting the United States at a disadvantage.
• The bill still requires approval from the European Council before final passage, but if approved, it could be implemented as early as 2024.
• EU Commissioner for Financial Stability Mairead McGuinness praised lawmakers for being “ahead of many other jurisdictions” regarding crypto regulation.
• Christine Lagarde, president of the European Central Bank, has proposed a “MiCA II” in the future to implement a broader framework in response to the collapse of FTX.