Crypto: Franklin Templeton predicts the downgrading of Europe!

Europe, formerly a pioneer in the regulation of cryptos, could soon be only a simple corridor crossed by innovation without ever retaining it. While the United States and Asia multiply concrete advances, the old continent is bogged down in caution. Catriona Kellas, legal manager at Franklin Templeton, does not mince words: the EU risks being relegated to the rank of spectator, unable to compete in the face of the dynamics of the great competing powers.

Mica, a leadership already weakened

While the granting of licenses in Malta worries the regulators, during his intervention in Digiassets 2025 in London from June 17 to 18, Catriona Kellas, international legal manager for digital projects at Franklin Templeton, A expressed Clear concern:

There is a real risk that this technology escapes the courts that were at the forefront a few years ago. It is so easy to delay when the legislative process is too slow.

Despite the entry into force of the Mica regulation, it alerts to the possibility that the European Union becomes a “Overview area” Between the United States and Asia, a space crossed, but rarely chosen as a land of welcome by major innovative projects.

And if it recognizes that Europe is still ” in a good position», She points out that this advance could quickly turn into regulatory inertia.

The alarm signal launched by Kellas is not based solely on a pessimistic observation, but is also based on a series of weak institutional signals, which show that the EU begins to react:

• Discussions are underway on a Mica 2, a sign that the limits of the initial framework are already identified;

• The European Commission pronounced the word ” competition “ which marks a notable rupture in the usual discourse, historically more focused on stability than on attractiveness;

• The DLT Pilot Regime, which entered into force a year ago, is already being evaluated: according to Kellas, managers seek to“Renovate so that it is adapted to its objective”;

• The European approach remains focused on the precautionary principle, but the gap is widening with regions that adopt more agile and experimental regulatory frameworks.

These elements show that European institutions are starting to integrate geopolitical tensions around Crypto regulation. However, the tempo remains slow, in a sector where technological innovation and implantation strategies evolve at a much faster speed than that of the legislators.

The United States and Asia in ambush

Beyond the strictly European framework, Catriona Kellas underlines the offensive dynamic which emerges across the Atlantic and in Asia. “”The energy that comes from the United States gives a real boost to Europe“, Underlines the latter.

She sees it as a potential catalyst, but also a latent danger: that of seeing major players in the sector prefer more flexible jurisdictions. While the EU is just looking at a possible Mica 2, some Asian countries like Singapore or South Korea have already set up agile and experimental environments, capable of seducing innovative companies.

This competitive pressure takes a concrete turn with the expansion strategy of giants like Coinbase and Gemini, in search of Mica licenses via Luxembourg and Malta. These approaches aim to take advantage of Passporting mechanismallowing to operate in the 27 Member States once a license obtained in a single country.

However, this triggers concerns among certain European regulators, who fear too rapid approval and heterogeneity of application of the rules. Kellas also evokes a global change: “What we observe is that governments challenge their regulators so that they come out of traditional patterns».

A recomposition of global balance seems to be emerging. If Europe fails to quickly adapt its approach, it could lose its position as a referee in international discussions on cryptos. However, Europe is preparing a new regulation DEFI from 2026, because Mica is no longer enough.