New European Union regulations on crypto assets under the MiCA framework require cryptocurrency exchanges in the EU to delist stablecoins that lack regulatory approval by December 30, 2024. This requirement may include USDT from Tether, as the company has not obtained local authorization.
MiCA mandates that all stablecoins available on crypto exchanges must be issued by entities holding a specific license. Circle, Tether’s closest competitor, secured such approval in July.
As of December 20, the total market capitalization of stablecoins is approximately $200 billion, with USDT accounting for $140 billion and Circle’s USDC at $42 billion.
Tether’s token significantly leads the cryptocurrency market in trading volume. Over the past 24 hours, USDT represented $218 billion of the total $385 billion traded across the market. For comparison, Bitcoin accounted for $110 billion, while USDC totaled $15 billion in trading volume.
In November, Tether decided to discontinue its EURT stablecoin, pegged to the euro, opting instead to invest in the European company StablR, which issues similar assets. StablR, the issuer of EURR and USDR, obtained the necessary license in Malta this summer to operate within Europe.
Shortly after, Tether announced plans to issue MiCA-compliant stablecoins EURQ and USDQ in collaboration with Quantoz Payments. These tokens will launch on Hadron, Tether’s platform for stablecoin and tokenized asset issuance.
Meanwhile, industry stakeholders warn that delisting USDT could expose Europe to the risk of missing out on a potential cryptocurrency boom linked to Donald Trump’s presidency, according to Bloomberg. Crypto industry leaders caution that the MiCA regulations may drain market liquidity without achieving the EU’s goals, ultimately reducing the region’s appeal to cryptocurrency traders during a critical period.
Industry experts argue that delisting Tether would limit Europeans’ access to the most liquid stablecoin currently available. Many crypto assets are traded in pairs with USDT, and investors forced to switch from USDT to trade with another stablecoin could incur losses.
Bloomberg also notes the potential for Europe to fall behind in the global crypto race. This risk comes as the United States ramps up competitive pressure.
Years of U.S. Securities and Exchange Commission (SEC) efforts to combat crypto firms may give way to pro-crypto policies under the new administration. Among the high-ranking officials is Howard Lutnick, CEO of Cantor Fitzgerald—a company holding $85 billion in Tether treasury bills—who has been appointed by Trump to lead the U.S. Department of Commerce.
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