Key Takeaways
- MiCA’s Dec. 30 rollout raises uncertainty about Tether’s compliance and its impact on the crypto market.
- Coinbase has delisted USDT due to MiCA regulations while other exchanges await further guidance.
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Tether’s USDT stablecoin faces mounting regulatory uncertainty as the European Union’s Markets in Crypto-Assets Regulation (MiCA) takes effect on December 30.
The new framework imposes strict compliance requirements for stablecoins, raising questions about USDT’s operational status across the EU.
Amid this uncertainty, many on crypto Twitter have been spreading FUD (fear, uncertainty, and doubt) about Tether, speculating on its compliance and future stability under the new rules.
Coinbase has already delisted USDT in anticipation of MiCA regulations, while major exchanges including Binance and Crypto.com continue trading the stablecoin as they await regulatory guidance.
“No regulators have explicitly stated that USDT isn’t compliant, but this does not mean that it is,” Juan Ignacio Ibañez, a member of the MiCA Crypto Alliance’s Technical Committee, told Cointelegraph.
He added that the key question remains whether all exchanges will delist USDT simultaneously or if some will wait for further clarity from regulators.
Tether CEO Paolo Ardoino addressed market concerns on social media, suggesting that FUD around Tether often is bullish for the crypto market, while dismissing the campaign as a “poorly coordinated effort” by competitors.
Under MiCA, stablecoin issuers must secure an e-money license and maintain up to two-thirds of reserves in independent banks. While Circle has obtained the required license, Tether has not yet done so.
In a Bloomberg report, Pascal St-Jean, CEO of crypto asset manager 3iQ Corp., highlighted the significance of Tether, stating that “a vast proportion of crypto assets trade in pairs against Tether’s USDT.”
He added that switching to other stablecoins or fiat pairs could create inefficiencies for investors.
The new MiCA regulations may prompt the delisting of the stablecoin on several European crypto exchanges, potentially leading traders to shift away from USDT by exchanging it for USDC or EUR fiat.
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