EU Review Opens Door to Tether's Return, But Reserve Model Remains a Hurdle
The European Union's Markets in Crypto-Assets Regulation (MiCA) review has sparked hope for Tether to return to Europe. The consultation on MiCA proposes recognizing foreign frameworks, such as the US GENIUS, which could allow Tether to operate in the EU without setting up a local subsidiary.
Patrick Hansen, head of EU policy affairs for Circle, noted that equivalence is shaping up to be an alternative to the multiple issuance model. Equivalence reduces duplicative compliance burdens and allows non-EU companies to operate without a local establishment.
Tether's CEO, Paolo Ardoino, has expressed interest in the review of MiCA, possibly to allow Tether to operate in Europe without modifying its reserve structure. However, equivalence will not solve Tether's problem if it is not accompanied by a reconsideration of the 60% requirement for European bank deposits.
The public consultation on MiCA ends on August 31, 2026, with a possible extension to September 30. What is decided in this process will set the definitive course for digital assets in the region.