Tether has announced a leadership change: Stuart Hoegner has stepped down as general counsel, succeeded by Michael Hilliard. This occurs amid uncertainty over MiCA compliance in Europe and USDT's market cap decline.
Leadership Change at Tether and Bitfinex
Last week, Tether announced the resignation of Stuart Hoegner from the position of general counsel. Michael Hilliard, who has previously worked with Hoegner, will take on the role. Tether noted that Hilliard's deep understanding of both companies' operations and strategic approach to legal and regulatory challenges have been crucial in advancing Tether and Bitfinex's mission.
Uncertainty Around USDT Compliance in Europe
The leadership change comes amid ambiguity regarding USDT’s compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulations, which took effect on December 30. Many stablecoin issuers, including Tether, find themselves in a gray area. Juan Ignacio Ibañez from the MiCA Crypto Alliance's Technical Committee stated that no regulators have explicitly declared USDT non-compliant, nor have they confirmed its compliance. The European Securities and Markets Authority has not clarified whether USDT falls under restricted stablecoins within MiCA.
USDT Market Cap Declines
USDT’s market cap decreased from $138.8 billion on December 30, 2024, to a weekly low of $136.9 billion on January 1, marking the steepest decline since the FTX collapse in November 2022. Nonetheless, USDT remains dominant in the stablecoin market with a share exceeding 65% in the $210 billion sector. On December 30, Tether moved nearly $780 million worth of Bitcoin into its corporate reserves, aligning with its commitment to allocate up to 15% of net profits towards Bitcoin purchases.
The leadership change and current market shifts highlight the complex challenges Tether faces in today's environment. Regulatory compliance issues and market dynamics continue to be key discussion topics within the stablecoin industry.
