Compliance or Exit? Examining USDT’s Future Under Europe’s MiCA Regulatory Regime
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Executive Summary
As the European Union’s Markets in Crypto-Assets (MiCA) regulation reaches full implementation, Tether’s USDT—the world’s largest stablecoin with a market cap exceeding $138 billion—faces unprecedented regulatory challenges in Europe. This investigative report examines the critical intersection between MiCA’s stringent compliance requirements and Tether’s business practices, the potential market implications, and the strategic options available to both regulators and market participants as this regulatory drama unfolds.
A Regulatory Turning Point
The cryptocurrency landscape in Europe is undergoing a seismic shift. Since December 30, 2024, when the European Union’s Markets in Crypto-Assets (MiCA) regulation came into full effect, the regulatory framework governing stablecoins has fundamentally transformed. This comprehensive legislation represents the EU’s attempt to bring order to the previously underregulated crypto market, with significant implications for all market participants—particularly stablecoin issuers like Tether.
The timing is particularly consequential as Tether’s USDT has grown to become the dominant stablecoin globally, …
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