Coinbase is advancing its expansion strategy in Europe, with reports suggesting it will soon receive regulatory approval under the European Union’s Markets in Crypto-Assets ( MiCA ) framework via Luxembourg. The move positions the exchange to serve users across the EU with a single license, reflecting broader institutional interest in the region’s clearer regulatory environment. However, at the same time, Coinbase is facing criticism from parts of the crypto community for sponsoring a US Army anniversary parade, with some users arguing the move contradicts the company’s stated commitment to political neutrality and the core values of the crypto space. Gemini and Coinbase Set to Expand in Europe as MiCA Reshapes the Crypto Landscape Gemini and Coinbase, two of the most prominent cryptocurrency exchanges in the United States, are reportedly on the brink of securing regulatory licenses to operate across the European Union under the newly implemented Markets in Crypto-Assets (MiCA) framework. The move signals a significant escalation in the global expansion efforts of these digital asset firms and shows Europe’s emerging leadership in crypto regulation. According to a report published by Reuters on Monday, Gemini is poised to obtain regulatory approval from Malta, while Coinbase is expected to receive its license through Luxembourg, a jurisdiction often favored by fintech and digital asset companies for its strong regulatory reputation. A Coinbase spokesperson, while declining to confirm details of the licensing process, acknowledged Luxembourg as a “well-respected global financial center.” If approved, Gemini and Coinbase would join a growing cohort of global exchanges pushing into the EU under the MiCA framework. Other major platforms, such as Bybit, have already gained a regulatory foothold—Bybit recently secured approval to operate in Austria. Binance, meanwhile, has adjusted its operations in Poland to align with the new requirements, signaling the widespread impact of the regulation. The Markets in Crypto-Assets regulation officially came into effect in June 2024, with full implementation expected by the end of the year following guidance from the European Securities and Markets Authority (ESMA). MiCA was introduced to harmonize crypto regulations across all 27 EU member states, offering a single licensing regime for crypto firms and eliminating the need for country-by-country compliance. The framework is designed to ensure regulatory clarity, enhance investor protection, and foster financial stability in the crypto markets. It introduces comprehensive oversight for crypto-asset service providers (CASPs), encompassing areas like custody, trading, and issuance of digital tokens, including stablecoins. While MiCA is widely seen as a pioneering step toward crypto regulation on a global scale, industry reactions have been mixed—particularly around the treatment of stablecoins. Stablecoin Regulation Sparks Controversy One of MiCA’s most debated provisions concerns stablecoins. The law requires stablecoin issuers to hold a “significant” portion of their reserves in European banks. This requirement has been sharply criticized by some players in the industry for limiting the global scope of stablecoin operations. Tether, the issuer of the world’s largest stablecoin USDt, has notably opted out of the MiCA regime, citing the stringent reserve requirements as a key concern. On the other hand, at least ten other stablecoins have received approval under MiCA, including those issued by Circle (USD Coin), Crypto.com, Fiat Republic, and even French banking giant Société Générale. Patrick Hansen, EU policy expert and Circle’s EU strategy lead, revealed in February that ten entities were already approved to operate stablecoins under the new regime. However, early indications suggest that uptake has been relatively cautious. Despite the promise of a unified regulatory framework, stablecoin adoption in the region remains tepid. Fabio Panetta, former executive board member of the European Central Bank and current Governor of the Bank of Italy, noted that MiCA has not spurred significant stablecoin growth in Italy, one of Europe’s largest economies. Instead, market demand appears to be gravitating more toward custodial and trading services—areas that exchanges like Gemini and Coinbase are well-positioned to serve. Their entry into the European market could capitalize on this shifting demand, offering secure infrastructure and institutional-grade trading capabilities amid a more regulated environment. A Global Chessboard for Crypto The expansion of Gemini and Coinbase into Europe comes at a time when the regulatory climate in the United States remains uncertain. US crypto firms continue to face enforcement actions and legal ambiguity from regulators like the Securities and Exchange Commission (SEC), which has been criticized for regulating by enforcement rather than through clear legislation. In contrast, the EU’s MiCA regime is being praised as a model of proactive regulation. By providing a passporting mechanism for firms licensed in one EU country to operate across all member states, MiCA has created an attractive and streamlined path for crypto firms aiming to serve European customers. As the crypto industry matures, regulatory clarity is increasingly seen as a competitive advantage. With Gemini and Coinbase soon to be licensed under MiCA, the European Union may become a pivotal arena for digital asset innovation, regulation, and adoption. Coinbase Faces Backlash for Sponsoring US Army Parade Amid Political Tensions Meanwhile, Coinbase is under fire from the crypto community following its sponsorship of the US Army’s 250th anniversary parade in Washington, D.C. The June 15 event, billed as a semiquincentennial celebration, drew support from President Donald Trump and sparked a wave of criticism among crypto advocates who see the move as politically charged and out of step with the ethos of decentralization. The backlash erupted shortly after Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, took to social media platform X on June 16 to announce that he would be exiting all of his positions in Coinbase — including stocks, bonds, and crypto holdings — in protest of the sponsorship. Cochran said the decision wasn’t just personal, but also a reflection of broader concerns about Coinbase’s evolving alignment with government and military interests. The military parade, which coincided with Donald Trump’s 79th birthday, unfolded against a backdrop of intensifying political division in the US and a growing debate over the role of tech companies in partisan affairs. Critics point out that while the event was marketed as a patriotic celebration, it bore distinctly political overtones given the president’s involvement and the timing of the event. Adding to the national unrest, a tragic and possibly politically motivated attack occurred the same day, claiming the lives of a Minnesota state lawmaker and her husband. The attacker reportedly attempted to target a state senator and his wife as well. Meanwhile, protests erupted across major US cities, with nearly five million people demonstrating against the Trump administration’s policies — including the militarization of urban areas and deportations without due process. In this volatile climate, Coinbase’s decision to sponsor a military event has been perceived by many as a tacit endorsement of political and institutional power, at odds with the crypto community’s founding ideals. Crypto's Cultural Identity at a Crossroads Online reaction has been swift and impassioned. X user Captain Nemo encapsulated the sentiment of many disillusioned users by arguing that the sponsorship betrayed the very principles that birthed the crypto movement. The discontent taps into a longstanding tension within the crypto industry — between those who view blockchain as a tool for individual empowerment and resistance to centralized authority, and those seeking mainstream legitimacy and institutional partnerships. Coinbase, which has long maintained a policy of staying out of “political causes,” now finds itself increasingly entangled in the very issues it once claimed to sidestep. This isn’t the first time Coinbase has courted controversy over its political affiliations. The company contributed $1 million to Trump’s 2017 inauguration fund and has been actively lobbying for regulatory clarity in Washington, D.C. CEO Brian Armstrong attended a March 2025 crypto summit hosted by the president and pushed for the passage of a stablecoin regulation bill in May. Coinbase’s chief policy officer, Faryar Shirzad, also announced during the Bitcoin 2025 conference in Las Vegas that the company would sponsor the 2026 semiquincentennial celebration. A source familiar with the matter said that the company’s recent parade sponsorship was a one-time financial contribution to America250 — a nonprofit, nonpartisan initiative tasked with organizing events to commemorate the 250th anniversary of the United States. However, critics argue that even indirect participation in politically loaded events carries consequences, particularly for a company representing an industry built on the promise of neutrality and financial freedom. A Battle for Crypto’s Narrative As Coinbase continues to grow its political and regulatory footprint, the crypto industry is being forced to confront uncomfortable questions: Can companies truly remain nonpartisan while engaging in government-led celebrations? Does participation in national events necessarily imply endorsement of a political regime? For some, Coinbase’s latest sponsorship represents a natural progression of crypto’s maturation — a sign that digital assets are becoming part of the mainstream financial and political fabric. For others, it marks a betrayal of crypto’s roots and a warning that the original vision of a decentralized, apolitical internet economy is at risk of being co-opted. With another controversial sponsorship lined up for 2026, Coinbase may need to do more than just explain its intentions — it may need to redefine what it stands for in the eyes of the community it helped bring into the mainstream.
