President-elect Donald Trump has become a prominent figure with the cryptocurrency market, primarily because of his ambitious vision to transform the United States into the “crypto capital of the planet.” This outlook is undoubtedly positive, as the United States holds the title of the largest capital market globally and wields significant influence on the international stage.

However, many in the crypto market appear to overlook another highly encouraging regulatory development. This involves the European Union’s comprehensive Markets in Crypto-Assets (MiCA) regulatory framework, which will be fully implemented across EU member states on December 30th.

The initial phase of MiCA, specifically Titles III and IV, was introduced on June 30th, as detailed in Crypto Moves #30. These initial rules concentrated on regulating stablecoins, an area of the crypto market that recently reached a new all-time high.

Chart 1: Total Stablecoin Supply

In 2021, when the previous all-time high in stablecoin supply was reached, algorithmic stablecoins played a much larger role in the overall supply. The new all-time high achieved now is even more remarkable, given that it occurred without the same trend and amidst significantly higher interest rates than in 2021. This highlights the growing demand for stablecoins, likely driven by use cases extending beyond native crypto applications, as evidenced by the total value locked (TVL) being far below its 2021 peak.