JPMorgan analysts predict that the EU's MiCA regulations, effective December 30, 2024, will boost the adoption of euro-denominated stablecoins, currently just 0.12% of the global market. The regulations will require stablecoin issuers to secure licenses and maintain reserves in European institutions, while banning algorithmic stablecoins. Institutions like Societe Generale and BBVA are already integrating compliant euro stablecoins, signaling a shift towards a more regulated and stable financial environment in the EU.
Cryptocurrency stocks surged in premarket trading as bitcoin surpassed $100,000 for the first time, with MicroStrategy rising 6.1%, Robinhood 4.3%, and Coinbase 3.5%. Year-to-date, MicroStrategy has skyrocketed 542.8%, while Robinhood and Coinbase have seen gains of over 200%. Investor optimism has been fueled by expectations of a more favorable regulatory environment following Donald Trump's election victory, leading to significant inflows into leveraged MicroStrategy ETFs, which accounted for a substantial portion of the record $11 billion inflow into crypto funds in November.
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