🚨🇪🇺 TETHER REVEALS WHY IT WALKED AWAY FROM A MiCA LICENSE
Tether CEO Paolo Ardoino has pointed to one major obstacle: MiCA’s reserve requirements.
Under the current EU framework, significant stablecoin issuers must hold at least 60% of reserves as bank deposits. Tether has argued that forcing a large portion of its reserves into commercial banks could introduce additional banking and liquidity risks.
That matters because Tether’s latest figures show around $184.6 billion in USDT issued, with its reserve strategy heavily focused on U.S. Treasuries and other short-duration, liquid assets.
Now comes the interesting twist 👀
🇪🇺 The ECB and EU national central banks are proposing that the fixed 30%/60% bank-deposit requirements be removed, replacing them with liquidity requirements based on how quickly reserve assets can mature or be converted to cash.
So the rule Tether criticized could now be heading for a rethink.
But nothing has changed yet: the proposed amendment has not been adopted, and the existing MiCA requirements remain in force.
💬 If the EU replaces the 60% deposit rule with a liquidity-based system, could Tether reconsider MiCA authorization?
#Tether #USDT #MiCA #ECB #Stablecoins #Crypto #Bitcoin #EU
Tether CEO Paolo Ardoino has pointed to one major obstacle: MiCA’s reserve requirements.
Under the current EU framework, significant stablecoin issuers must hold at least 60% of reserves as bank deposits. Tether has argued that forcing a large portion of its reserves into commercial banks could introduce additional banking and liquidity risks.
That matters because Tether’s latest figures show around $184.6 billion in USDT issued, with its reserve strategy heavily focused on U.S. Treasuries and other short-duration, liquid assets.
Now comes the interesting twist 👀
🇪🇺 The ECB and EU national central banks are proposing that the fixed 30%/60% bank-deposit requirements be removed, replacing them with liquidity requirements based on how quickly reserve assets can mature or be converted to cash.
So the rule Tether criticized could now be heading for a rethink.
But nothing has changed yet: the proposed amendment has not been adopted, and the existing MiCA requirements remain in force.
💬 If the EU replaces the 60% deposit rule with a liquidity-based system, could Tether reconsider MiCA authorization?
#Tether #USDT #MiCA #ECB #Stablecoins #Crypto #Bitcoin #EU