Tether Rejects EU MiCA License Over Reserve Rule Requirements

Tether CEO Paolo Ardoino 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 if adopted.

Tether's refusal to comply with the EU MiCA license rules emphasizes ongoing regulatory challenges facing the stablecoin sector.