With the Markets in Crypto Assets (MiCA) Regulation coming into full effect in the EU, the future of USDT, Tether’s main stablecoin, faces increased uncertainty. To date, the company has not yet received the necessary authorization to operate legally in the region.
Under the MiCA regulations, which came into force on 30 June this year, issuers of asset-referenced tokens (EALs) and e-money tokens (EMTs), including issuers of stablecoins, must ensure proper registration if they seek to run their businesses in the EU. .
EU issues
On July 1 (shortly after MiCA came into effect), Circle, the company behind the second largest USDC stablecoin, said it had received an e-money license from the Autorité de Controle Prudentiel et de Résolution (ACPR) of France, the financial regulatory authority of the French central bank. .
The authorization allows Circle to issue its stablecoins, the USD Coin (USDC) and the Euro Coin (EURC) in the EU. The company also became the first global stablecoin issuer to meet regulatory standards.
Since approval, USDC’s market cap has risen by about 35%, rising from $32.2 billion to $43.7 billion, CoinGecko data shows. Over the same period, EURC’s market value increased over 130% to approximately $84 million at press time.
With a market cap of $137 billion, the USDT continues to lead a stable coin market. But continued uncertainty over its legal status in the EU could result in further market share losses. Data shows that the market cap of USDT fell by almost 10%, from $138.7 billion to $137.4 billion within 24 hours.
Before the full MiCA application deadline, several cryptocurrency exchanges took steps to comply with the new rules. Bitstamp and OKX announced the delisting of USDT and EURT, Tether’s Euro-pegged stablecoin, earlier this year.
Coinbase said in a statement in October that it would cease support for non-compliant stablecoins within the European Economic Area (LEE) by the end of the year. The policy will affect six stables, including USDT.
In contrast, major exchanges like Binance, Kraken, and Crypto.com are still assessing the situation without any official delisting announcement.
Tether invests in a MiCA compliant Stablecoin Issuer
Instead of focusing on USDT compliance in the EU, Tether is now prioritizing other initiatives that allow it to enter the market, of course, in accordance with the legal framework.
Earlier this month, Tether announced its investment in StablR, a stablecoin issuer that recently received an Electronic Money Institution (EMI) license in Malta. The license enables the firm to issue its Euro-pegged stablecoin, EURR, in the EU.
The move follows Tether’s decision to end its support for EURT in late November. Apart from supporting StablR, the company revealed plans to issue two new stablecoins targeting the European market, EURQ and USDQ.
Tether said these stablecoins are developed in partnership with Quantoz Payments and are powered by Tether’s Hadron technology, a new platform that delivers the tools needed for stablecoin issuance, anti-money laundering management, and more.
However continuous developments could not keep the FUDs at bay. People love USDT, no matter how much skepticism surrounds the project.
Addressing concerns about the future of USDT, and its possible delisting from trading platforms, Tether CEO Paolo Ardoino emphasized that no EU regulators have declared USDT a non-compliant token. He also suggested that FUD was the competitors’ attempt to “desperately make you believe things that aren’t there.”
Plus, there are many in the cryptocurrency shared support for Tether. Samson Mow defended Tether, saying the FUDs are from those who don’t know Tether’s strong position or those driven by an “agenda.”
The expert noted Tether’s connection to Cantor Fitzgerald, the prestigious firm led by Howard Lutnick, Trump’s newly appointed secretary of Commerce, although Lutnick is expected to step down once the Senate confirms his role .
