Analysis: EU banking regulation provides a competitive advantage for crypto companies, while their US counterparts face regulatory uncertainty and limited access to banking

ChainCatcher news, an analysis by Patrick Hansen, Senior Director of Strategy and Policy at Circle, shows that the EU's banking regulation provides a significant competitive advantage for crypto companies, while their American counterparts face regulatory uncertainty and restricted bank access.

The report indicates that the EU has promoted innovation in the financial sector for non-bank payment service providers (PSPs) through legal frameworks such as the Electronic Money Directive (EMD) and the Payment Services Directive (PSD). Recent regulations like the Instant Payment Regulation (IPR) and Payment Services Directive 3 (PSD3) further expand non-bank PSPs' access to central bank payment systems.

In contrast, the United States is hindered by a lack of a unified federal regulatory framework, leading to restricted bank access and stunted industry development. Data shows that Europe has 55 crypto-friendly banks, far surpassing North America's 23.

Hansen points out that the EU's coordinated regulatory strategy provides important support for the crypto and fintech industries while reducing regulatory uncertainty.