Susan Friedman, a Ripple executive, has praised the European Union’s (EU) progressive approach to cryptocurrency regulation following the passage of the Markets in Crypto-Assets (MiCA) legislation by the EU Parliament.
In a tweet, Friedman expressed her enthusiasm for the EU‘s sensible regulatory measures, which stand in contrast to the United States’ enforcement-focused approach. She also highlighted Ripple’s eagerness to expand in the European market, joining other major crypto firms such as Binance, Coinbase, and Kraken in welcoming the new legislation.
MiCA aims to provide regulatory clarity and harmonization for crypto firms operating across Europe. With a significant majority of 517 Members of the European Parliament (MEPs) voting in favor and only 38 voting against, the legislation now moves to its final formal vote in the Council of the EU on May 16.
According to Circle’s Patrick Hansen, the regulation will take effect for stablecoin issuers in June 2024 and for all other crypto-asset service providers in December 2024, upon publication in the Official Journal of the EU.
The EU’s primary 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 poised to become a global hub for crypto projects due to regulatory clarity and its large single market of 450 million consumers.
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