@unclean
The EU's MiCA regulations, fully effective December 30, 2024, impose strict requirements on stablecoin issuers like Tether (USDT), including e-money licenses and 60% cash reserves in EU banks. Tether's non-compliance has led to delistings by exchanges like Coinbase, with others like Binance restricting access. This threatens USDT's dominance, as its market cap dropped from $141 billion to $137 billion by early 2025. Compliant alternatives like USDC, already MiCA-authorized, could gain traction, especially with partnerships like Binance-Circle. Tether's resistance to reserve rules and shift to investments in MiCA-compliant issuers like StablR may not fully offset losses. While a transitional 18-month period offers some relief, USDT's EU market share may decline as traders pivot to regulated options, reshaping stablecoin dynamics post-2024.
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