EU’s MiCA Regulations Expected to Strengthen Euro Denominated Stablecoins
The EU's MiCA regulations, effective December 30, are expected to enhance euro-denominated stablecoins, according to JPMorgan. Key points include:
- Only compliant stablecoins can function as trading pairs in regulated markets.
- This change benefits compliant stablecoins like Circle's EURC, while non-compliant ones such as Tether's EURT face difficulties.
- Tether will discontinue its EURT stablecoin and has seen USDT delisted from several EU exchanges.
- Stablecoin issuers must hold substantial reserves in European banks and obtain licenses for trading.
- Tether remains influential in the global market, particularly in Asia, despite these regulatory challenges.
- Tether is investing in MiCA-compliant issuers like Quantoz Payments and StablR to maintain its presence in the EU.