Europe Leads the Way in Crypto Banking as the US Faces Crypto Threat

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Europe has positioned itself as a leader in crypto banking, surpassing other global players in the race to establish a strong presence in the sector. While the policies surrounding cryptocurrency in the United States, particularly those under President Donald Trump, pose a substantial challenge to Europe’s monetary independence, the continent continues to be the forerunner in terms of crypto-friendly banking institutions.

Patrick Hansen, a prominent executive at Circle, recently took to X to discuss Europe’s dominance in crypto banking. His insights shed light on the continent’s strategic approach to digital assets, despite the looming threat of US crypto policies. Let’s explore his key points and the ways Europe has solidified its role in the crypto banking ecosystem, even amidst challenges posed by US crypto regulations.

Europe Emerges as the Leader in Crypto Banking, According to Patrick Hansen

In a recent post on X, Patrick Hansen, Director of EU Strategy and Policy Advisor at Circle, emphasized that “Europe is leading the world in terms of crypto-friendly banks.” While countries like the United States are working hard to carve out a space in the crypto banking industry, Europe has already made significant advancements and firmly established itself as the leader in the sector.

According to Hansen, while the US is only beginning to explore crypto banking opportunities, Europe has already made remarkable progress with over 50 banks offering digital asset services. Hansen shared on X, “50+ European banks now offer crypto services, including trading, custody, staking, payments, stablecoins, and banking services for crypto firms. Europe is home to the largest number of crypto-friendly banks in the world—by far.”

Additionally, Hansen pointed out that European banks, including some of the largest Global Systemically Important Banks (G-SIBs), have been laying the groundwork for crypto integration for years. This development has involved significant investments in infrastructure, expertise, and regulatory compliance, with the Markets in Crypto-Assets Regulation (MiCA) now providing a clearer path forward for future growth.

Trump’s Crypto Policies Threaten Europe’s Monetary Sovereignty

However, US President Donald Trump’s crypto policies have sparked concerns within Europe, particularly regarding the potential impact on the continent’s control over its monetary system. This concern was voiced by a European Union official at a recent Eurogroup meeting, where discussions centered on the potential risks posed by the US administration’s favorable stance towards cryptocurrencies and dollar-backed stablecoins.

Pierre Gramegna, Managing Director of the European Stability Mechanism, warned that US support for USD-denominated stablecoins could potentially give tech giants the power to create global payment systems, thus undermining Europe’s financial stability and its ability to maintain monetary sovereignty.

This concern arises amid the EU’s push for regulatory clarity, evidenced by the recent application from the KuCoin exchange for a Markets in Crypto-Assets Regulation (MiCAR) license in Austria. These developments underscore the growing competition between US and European crypto policies.

Europe’s Crypto Banking Is Ahead of the US in Custody and Stablecoin Services

The Office of the Comptroller of the Currency (OCC) in the US has recently issued new guidelines allowing US banks to offer crypto custody services and engage in stablecoin activities. While this news has been met with optimism within the crypto community, fueling hopes for expanded banking services and greater mainstream adoption, Hansen reminds the community that European banks are already several steps ahead.

Hansen stated, “While the US OCC just issued guidance allowing banks to engage in digital asset services such as custody or stablecoin services, European banks are already years ahead.” He believes that European banks are poised to capitalize on their early lead in the crypto space, representing one of the rare instances in which Europe is ahead of the US in the global race for financial innovation.