#Tether #MiCA
Tether CEO Paolo Ardoino said that, because MiCA requires major stablecoin issuers to keep at least 60% of reserves in commercial bank deposits, the company declined to apply for an EU license.
The European Central Bank and others have proposed removing this reserve requirement and replacing it with a liquidity requirement based on short-term maturing assets, but this change has not yet been approved.
This rule ties the issuers’ balance sheets to those of the banking system; the affected parties are issuers that want to operate in the EU in a compliant manner. Assessment: as long as the 60% deposit requirement remains, Tether’s position will not change.
$TAO $ONDO $KITE
Tether CEO Paolo Ardoino said that, because MiCA requires major stablecoin issuers to keep at least 60% of reserves in commercial bank deposits, the company declined to apply for an EU license.
The European Central Bank and others have proposed removing this reserve requirement and replacing it with a liquidity requirement based on short-term maturing assets, but this change has not yet been approved.
This rule ties the issuers’ balance sheets to those of the banking system; the affected parties are issuers that want to operate in the EU in a compliant manner. Assessment: as long as the 60% deposit requirement remains, Tether’s position will not change.
$TAO $ONDO $KITE
