Important points
The December 30th rollout of MiCA has heightened uncertainty about Tether’s compliance and its impact on the crypto market. Coinbase has delisted USDT due to MiCA regulations, but other exchanges are awaiting further guidance.
Share this article
Tether’s USDT stablecoin faces increased regulatory uncertainty as the European Union’s Cryptoassets Market Regulation (MiCA) takes effect on December 30th.
The new framework imposes strict compliance requirements on stablecoins, raising questions about how USDT will operate across the EU.
Amid this uncertainty, many on crypto Twitter are spreading FUD (Fear, Uncertainty, Doubt) about Tether and speculating about Tether’s compliance and future stability under the new rules.
Coinbase has already delisted USDT in anticipation of the MiCA regulation, but major exchanges such as Binance and Crypto.com continue to trade the stablecoin pending regulatory guidance.
Juan Ignacio Ibañez, a member of the technical committee of the MiCA Crypto Alliance, told Cointelegraph: “While no regulator has explicitly stated that USDT is not compliant, this does not mean it is.” spoke.
He added that the key question remains whether all exchanges will delist USDT at the same time, or whether some exchanges will wait for further clarity from regulators.
Tether CEO Paolo Ardoino addressed market concerns on social media, suggesting that FUD around Tether is often bullish for the crypto market, while also criticizing the campaign by competitors. It dismissed it as a “poorly coordinated effort.”
Under MiCA, stablecoin issuers must secure an e-money license and maintain up to two-thirds of their reserves in independent banks. Circle has obtained the necessary licenses, but Tether has not yet.
In a Bloomberg report, Pascal St. Jean, CEO of crypto asset management company 3iQ Corp., said that “the vast majority of crypto assets are traded in pairs with USDT on Tether.” He emphasized the importance of tethers.
He added that switching to other stablecoins or fiat pairs could create inefficiencies for investors.
The new MiCA regulation could prompt the delisting of stablecoins on some European crypto exchanges, potentially allowing traders to migrate away from USDT in exchange for USDC or EUR fiat currencies.
Share this article
