Tether Rejects EU MiCA License Over Stablecoin Reserve Rules

Tether, the issuer of the world's largest stablecoin USDT, has decided not to apply for a license under the European Union's Markets in Crypto-Assets (MiCA) framework.

The company's CEO Paolo Ardoino stated that this decision is due to the restrictive reserve rules imposed by MiCA on stablecoin issuers. According to Ardoino, these rules conflict with Tether's asset management approach, which prioritizes globally liquid assets such as US Treasury bonds.

The absence of USDT from the group of MiCA-licensed stablecoins could put pressure on European exchanges and payment providers that rely on its dollar liquidity. Some platforms may prioritize local alternatives or regulation-compliant products, while others might continue operating USDT through entities outside the EU based on their own regulatory analyses.