Tether Rejects EU MiCA License Over Reserve Rules

Tether's CEO Paolo Ardoino has announced that the company will not apply for an EU MiCA license due to the requirement that stablecoin issuers hold at least 60% of their reserves in commercial bank deposits. This decision comes as the European Central Bank considers revising these reserve rules, which could significantly alter the landscape for stablecoin operations in Europe.

The European Central Bank's proposed amendments aim to mitigate risks from volatile stablecoin deposits. If adopted, this would impact how stablecoin issuers operate, potentially reshaping the regulatory framework. Tether continues to navigate these turbulent waters without the EU license, which may affect its operations within the region.