Circle stated that the USDC stablecoin is the only asset out of the ten largest in the world by market capitalization that currently fully complies with the European Union regulation on Crypto Asset Markets (MiCA). This statement means that about 450 million EU residents are losing regulated access to other major US dollar-backed stablecoins, including Tether's USDT. The full implementation of MiCA legislation is changing the landscape of the cryptocurrency market in the region, stimulating professional discussions about the balance between technological innovation and financial stability.

According to the MiCA regulations, issuers of stablecoins are required to share their reserves, regularly publish confirmations of their availability, respect clients' rights to repayment, and adhere to strict corporate governance standards. Crypto exchanges serving clients from the European Union and the European Economic Area are required to stop offering stablecoins from issuers that do not meet these requirements. The transition period ended on July 1, after which the European Securities and Markets Authority (ESMA) officially called on unauthorized firms to cease their activities in the EU.

Special requirements apply to stablecoins classified as "significant" by the regulator. This category includes assets that meet certain criteria, such as the number of holders over 10 million, a market capitalization of more than 5 billion euros, or an average number of daily transactions exceeding 2.5 million. A rule has been introduced for such issuers, according to which at least 60% of reserves must be held on bank deposits within the European Union. Tether, whose USDT asset meets the quantitative criteria of significance, refused to adapt its reserve structure to these requirements. Paolo Ardoino, CEO of Tether, said that the forced transfer of assets from short-term US Treasury bonds to deposits in commercial banks could create systemic risks to the stability of the European banking system during financial crises. In this regard, Tether has officially stopped issuing the EURT stablecoin, pegged to the euro, citing the need to protect users and prioritize other initiatives until a more balanced regulatory framework is created.

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The material has been prepared solely for informational purposes and does not constitute financial advice or recommendation.