In 2025, the enforcement of MiCA in the EU and the GENIUS Stablecoin Act in the US has significantly changed the global cryptocurrency market, particularly in terms of liquidity.
Compliance Surge with MiCA and GENIUS Act
The MiCA regulation in the EU and the GENIUS Stablecoin Act in the US have triggered notable changes in trading strategies and market preferences. The focus has shifted towards compliance with new requirements, impacting liquidity and stablecoin usage. Institutional stakeholders and major platforms such as BlackRock and Ethena Labs have started to implement new liquidity management strategies.
Changes in Stablecoin Market Shares Post Regulations
As a result of MiCA, many European exchanges have delisted USDT, while the GENIUS Act has encouraged the adoption of USDC. These changes have created a new liquidity structure in the cryptocurrency market. Data indicates a rise in DeFi activity following this regulatory transition.
Regulatory Echoes: Volatility and Market Fragmentation
Similar to events like China's crypto ban in 2021, these regulatory changes have led to liquidity fragmentation but have also opened new opportunities. Experts emphasize the importance of liquidity for DeFi resilience while noting the influence of cross-border capital flows. These conditions create opportunities for strategic repositioning within the crypto space.
The introduction of MiCA and the GENIUS Act in 2025 signals significant changes in liquidity dynamics within the cryptocurrency market. The market is adapting to new conditions, creating both opportunities and risks for participants.
