The European Union has approved 10 stablecoin issuers under MiCA regulations, excluding Tether. This decision has sparked discussions about its significance for the cryptocurrency market.
What are the MiCA Regulations?
The Markets in Crypto-Assets (MiCA) Regulations are a comprehensive legal framework introduced by the EU to oversee crypto assets, including stablecoins, utility tokens, and crypto service providers. MiCA aims to establish clear legal guidelines, protect investors, and promote financial stability while fostering innovation in the digital asset market.
EU Approves 10 Stablecoin Issuers
On February 20, 2025, the European Securities and Markets Authority released a list of 10 firms authorized to issue stablecoins within the EU under the MiCA framework. These include Banking Circle, Circle, Crypto.com, and others. Conspicuously absent is Tether, the world's largest stablecoin by market capitalization.
Implications of Tether's Exclusion
Tether's exclusion from the approved list has led to significant consequences in the EU's cryptocurrency landscape. Before the MiCA compliance deadline in December 2024, several crypto platforms began delisting USDT for EU users. Tether described these actions as "rushed and unwarranted."
The MiCA framework represents the first comprehensive legal framework for managing crypto assets. While it provides essential transparency, its strictness may limit competition and innovation in the EU crypto space.
