US stablecoins control 99% of the global market. China is proceeding with the introduction of e-CNY. Europe, backed by MiCA and the first BaFin regulated euro stablecoin EURAU, hopes to fill that gap. But can we move fast enough?
BeInCrypto spoke to Gracy Chen, CEO of Bitget, about Europe’s strengths, regulatory challenges, and whether the EU can still play a leading role in digital finance.
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Europe vs. the US: two competing models
BeInCrypto: How do you assess Europe’s position vis-à-vis the US and Asia?
Gracie Chen: Europe is based on MiCA. MiCA provides a uniform legal framework but requires a high compliance burden. Issuers are required to maintain full reserves, have significant capital and obtain an EMI license. This protects users, but increases barriers to entry and slows growth.
In contrast, the U.S. Genius Act takes a lighter, innovation-first approach, she said. This has allowed private issuers like Circle and Tether to scale up rapidly and integrate USDC and USDT into Visa and Mastercard’s networks.
Meanwhile, Asia remains focused on CBDCs, with private stablecoins still playing a limited role.
Is MiCA enough to drive innovation?
BeInCrypto: Will MiCA foster innovation or does Europe need more flexibility?
Mr. Chen: MiCA is a strong foundation, but Europe needs three adjustments. These include faster approval of CASPs and issuers, stronger support for multi-bank reserve models such as EURAU, and harmonized implementation across all member states.
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Without these, Europe risks fragmented regulation and delayed implementation.
EURAU and European sovereignty
BeInCrypto: What does the launch of EURAU mean for Europe?
Chen: EURAU is a very important step. As Germany’s first BaFin-regulated euro-backed crypto asset, it provides a compliant alternative to USD stablecoins and strengthens European monetary sovereignty. Regulatory clarity will trigger institutional adoption and cross-border payments use cases, she added.
What Europe must do to remain competitive
BeInCrypto: What are the most urgent measures for the EU?
Chen: Europe needs to move from policy clarity to operational readiness. The priority is to accelerate MiCA-compliant Euro stablecoins using native SEPA Instant or TIPS integration to enable fast and low-cost launches.
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Europe also needs Level 2 standards, EU-wide passporting, and clear rules for yield-bearing products such as tokenized Treasury bills, areas where the EU can differentiate itself from the US.
Infrastructure is also important. Europe needs a unified fiat ramp, merchant acceptance programs, interoperability rails, and a common oversight strategy.
A dedicated stablecoin sandbox and developer toolkit could attract new issuers and close the innovation gap.
Building trust: compliance and technology
BeInCrypto: What builds trust in European stablecoins?
Chen: Transparency and audited reserves. MiCA’s quarterly reporting requirements will help prevent the uncertainty that led to the collapse of TerraUSD.
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Mandatory AML/KYC integration and secure, audited smart contracts provide further assurance for institutional and retail users.
Will Europe become a major player in stablecoins?
BeInCrypto: Can Europe compete in the next 3-5 years?
Chen: Europe could be a respectable player, but it is unlikely to overtake the US, which already controls almost the entire market through its mature private sector ecosystem. Europe’s advantage lies in regulatory clarity, but practical adoption of that framework requires accelerated innovation.
Regulation gives Europe a head start – innovation will decide the rest
Europe has a complete and unified regulatory framework, which other regions lack. But rules alone cannot close 99% of the market gap.
As Gracie Chen has warned, the EU needs to combine MiCA with speed, infrastructure and incentives. Whether that is enough to challenge US dominance remains a decisive test for Europe, and the answer will be found soon.
