Analysis: EU banking regulations provide a competitive advantage for crypto companies, while US counterparts face regulatory uncertainty and restricted access to banking.

According to ChainCatcher news, an analysis by Patrick Hansen, Senior Director of Strategy and Policy at Circle, shows that EU banking regulations provide a significant competitive advantage for crypto companies, while their US counterparts face regulatory uncertainty and restricted access to banking.

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

In contrast, the US is hindered by a lack of a unified federal regulatory framework, restricted access to banking, and impeded industry development. Data shows that Europe has 55 crypto-friendly banks, far exceeding North America's 23.

Hansen pointed out that the EU-coordinated regulatory strategy provides significant support for the cryptocurrency and fintech industries while reducing regulatory uncertainty.