Tether Skips MiCA Registration: CEO Explains Why
Paolo Ardoino, CEO of Tether, recently addressed criticism regarding the company's decision not to register USDT under the European Union's Markets in Crypto-Assets (MiCA) regulatory framework. He argued that MiCA poses significant risks to stablecoins and the European banking system.
Tether's Stance on MiCA
Speaking at the Token2049 conference in Dubai, Ardoino clarified that Tether has no plans to seek MiCA compliance for USDT in Europe. This decision could lead to exchanges delisting the stablecoin. While acknowledging the need for regulatory compliance, he expressed concerns about the "fear of compliance" among EU firms.
Ardoino voiced strong concerns about MiCA's impact on stablecoins, stating that the regulations could be detrimental to the European banking system. He highlighted requirements such as maintaining 60% of stablecoin reserves in insured cash deposits within European banks as a potential cause for financial instability.
"I decided not to apply for the MiCA license because I need to protect the 400 million+ users we have globally. I believe the European Central Bank is more interested in promoting the digital euro as a means of control over people's spending habits."
A related video interview with Ardoino is available here: Tether CEO Interview
Impact on Exchanges and Delistings
Following MiCA's implementation in December 2024, several crypto exchanges have taken steps to list only MiCA-compliant tokens. Kraken delisted 5 stablecoins, including USDT, and Crypto.com announced plans to delist 10, highlighting the impact of this regulation.
Tether's US Strategy and Bitcoin Reserves
Regarding Tether's US operations, Ardoino indicated that a different product approach would be necessary due to existing competition. He also commented on the growing trend of countries accumulating Bitcoin reserves, suggesting it's an "inevitable" development. He stated, "In the medium to long term, more Bitcoin education and company adoption will lead to widespread acceptance."
Tether recently reported approximately $120 billion in exposure to US Treasuries as of Q1 2025, while USDT maintains a market capitalization of roughly $149 billion (as of May 1).
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