Officials in the European Union believe that the US Securities and Exchange Commission's (SEC) recent crackdown on major crypto exchanges Binance and Coinbase could boost Europe's chances of becoming a global leader in the crypto industry.

The EU's new Markets in Crypto Assets (MICA) regulation offers more clarity to blockchain innovators than the SEC's regulation by enforcement approach, and businesses are reportedly turning to Europe for stability and risk management.

Lawmaker Ondřej Kovařík, the main negotiator of MICA, believes that the EU's tailor-made regime will prevent uncertain enforcement seen in the US and may attract businesses that are considering shifting because of the new framework.

However, the success of MICA will depend on its smart implementation over the next 12-18 months.