Tether CEO Says MiCA Rules Are Too Risky for USDT Reserves
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- Tether CEO said it skipped MiCA licensing because its reserve rules are “very dangerous.”
- Ardoino argued MiCA’s 60% uninsured bank deposit requirement could create systemic risks.
- Tether’s decision to skip MiCA ended USDT trading on regulated crypto exchanges in the EU.
Tether CEO Paolo Ardoino has explained why the company chose not to apply for a license under the European Union’s Markets in Crypto-Assets (MiCA) framework. According to Ardoino, the regulation creates unnecessary risks for stablecoin issuers instead of making the market safer.
He said MiCA requires issuers to keep 60% of their reserves as uninsured cash deposits in European banks. Ardoino argued that such a rule could expose stablecoin issuers to banking risks during periods of heavy redemptions.
Tether’s decision means USDT, now valued at roughly $186 billion, has no MiCA authorization and…
Read The Full Article Tether CEO Says MiCA Rules Are Too Risky for USDT Reserves On Coin Edition.
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