#EU's New Regulations Boost Euro Stablecoin Development#
Hot Topic Overview
Overview
The MiCA regulation, which came into effect on December 30th in the EU, could potentially boost the development of euro-denominated stablecoins. JPMorgan believes that MiCA's requirement for stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses will give compliant stablecoins, such as Circle's EURC, an advantage in the regulated market, while posing challenges for non-compliant stablecoins like Tether's EURT. Tether has discontinued its EURT stablecoin and delisted it from several EU exchanges. Nevertheless, Tether remains a "dominant force" in the global stablecoin market and is widely used in Asian markets. Tether's investment in MiCA-compliant stablecoin issuers suggests its commitment to maintaining a presence in the EU.
Ace Hot Topic Analysis
Analysis
The implementation of the EU's new MiCA regulation could potentially boost the development of euro-pegged stablecoins. In a research report, JPMorgan pointed out that MiCA regulations require stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses, which would give compliant stablecoins, such as Circle's EURC, an advantage in the regulated market. Non-compliant stablecoins, such as Tether, face challenges, as evidenced by Tether's forced discontinuation of its EURT stablecoin and delisting from multiple EU exchanges. Although Tether remains a "dominant force" in the global stablecoin market, its investment in MiCA-compliant stablecoin issuers, such as StablR, demonstrates its commitment to maintaining a presence in the EU. The implementation of MiCA regulations will create a more level playing field for compliant euro-pegged stablecoins and could potentially drive further development of euro-pegged stablecoins.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
The EU MiCA regulation could promote the development of euro-denominated stablecoins, as only compliant stablecoins can be used as trading pairs in regulated markets.
MiCA regulations require stablecoin issuers to hold large reserves in European banks and obtain trading licenses, which has posed challenges for some non-compliant stablecoin issuers.
MiCA regulations have prompted some stablecoin issuers, such as Tether, to phase out their euro stablecoins, leading to the delisting of USDT from multiple EU exchanges.
Tether's investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining a presence in the EU.