Tether CEO defends decision to skip MiCA registration for USDT
Paolo Ardoino, CEO of Tether, criticized the EU's Markets in Crypto-Assets (MiCA) regulations, deeming them risky for stablecoins. Tether will not seek compliance for its USD-pegged stablecoin, USDt, which may lead to delisting by exchanges. Ardoino expressed concerns that MiCA could jeopardize small and medium banks in Europe by requiring 60% of stablecoin reserves to be held in insured cash deposits. He emphasized the need to protect Tether's global user base and suggested that the European Central Bank is focused on promoting a digital euro for control over spending. As MiCA regulations take effect in December 2024, exchanges like Kraken and Crypto.com have begun delisting non-compliant stablecoins. Ardoino also noted that the U.S. would require different products due to competition with local issuers and mentioned the inevitability of countries establishing Bitcoin reserves. Tether reported approximately $120 billion in exposure to U.S. Treasurys as of Q1 2025, with USDt's market cap around $149 billion as of May 1.
