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Significance

The EU’s Markets in Crypto-Assets (MiCA), the first comprehensive set of regulations, aims to reduce the risk of an FTX-type collapse. The final vote is due during the plenary session of the European Parliament on April 17-20.

Impacts

MiCA will be only the first step in the EU’s attempt to regulate crypto-assets and will require updates as new innovations emerge.

The EU's crypto regulations will be tracked closely elsewhere, particularly in other G20 countries.

The Ukraine war will harden Russia’s willingness to crack down on its large, illicit crypto ecosystem.

The lack of a comprehensive US crypto regulatory framework will impede transatlantic supervisory coordination.

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