Core Viewpoint - Market regulators in France, Austria, and Italy are urging the European Union to enhance its crypto regulation approach to ensure investor protection and maintain competitiveness in the digital asset market [1][2]. Regulatory Concerns - The initial implementation of the MiCA legislation has revealed significant discrepancies in enforcement among national supervisors, which could lead to firms exploiting lenient jurisdictions [2][5]. - The regulators emphasize that without uniform enforcement, investor protection may be compromised, and the integrity of Europe's digital asset market could be at risk [2][5]. Proposed Measures - The regulators propose that the European Securities and Markets Authority (ESMA) should take direct supervision of the largest crypto-asset service providers to ensure consistent oversight [3]. - They recommend closing loopholes that allow EU intermediaries to route orders to offshore platforms not subject to MiCA, which currently leaves investors unprotected [3]. - Mandatory independent cybersecurity audits are suggested before firms can obtain or renew MiCA licenses, addressing the sector's vulnerability to hacks [4]. - A centralized filing system for token white papers is proposed to facilitate cross-border offerings and enhance legal clarity [4]. Alignment with International Standards - The regulators argue that swift adjustments to MiCA are necessary to align with international standards set by the Financial Stability Board and IOSCO [5]. - They warn that failure to make these adjustments may force national regulators into emergency measures, potentially fragmenting the digital asset market in Europe [5].

Core Viewpoint - Bitcoin price reached a record high, driven by optimistic sentiment surrounding U.S. regulation, particularly the proposed stablecoin legislation in the Senate [1] Group 1: Regulatory Developments - The recent rebound in Bitcoin and the broader cryptocurrency market is attributed to favorable regulatory news, including the stablecoin bill proposed after Democratic opposition was dropped [1] - The bipartisan group aims to pass the stablecoin legislation in the Senate as early as this week [1] Group 2: Market Sentiment - Michael Novogratz, CEO of Galaxy Digital, noted that the shift in regulatory stance from the SEC under former Chair Gary Gensler to the Trump administration has invigorated market sentiment [1] - This change is perceived to have released a sense of 'animal spirits' in both domestic and international markets, enhancing investment enthusiasm [1]