#EU 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 prompt EU exchanges to adjust their offerings and drive the growth of compliant stablecoins like Circle's EURC. Non-compliant stablecoins like Tether face challenges, as evidenced by Tether's discontinuation of its EURT stablecoin and its delisting from multiple EU exchanges. Nevertheless, Tether remains a "dominant force" in the global stablecoin market and enjoys widespread use in Asian markets. Tether's investment in MiCA-compliant stablecoin issuers also indicates its commitment to maintaining a presence in the EU.
Ace Hot Topic Analysis
Analysis
The MiCA regulation, which came into effect on December 30th in the EU, could potentially drive the development of euro-denominated stablecoins. In a research report, JPMorgan pointed out that MiCA requires stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses. This will encourage EU exchanges to adjust their products and favor compliant stablecoins, such as Circle's EURC. Non-compliant stablecoins, like 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 will likely drive the development of euro-denominated stablecoins and potentially reshape the stablecoin market landscape.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
EU MiCA regulation may promote the development of euro-denominated stablecoins
MiCA regulation requires stablecoin issuers to hold large reserves in European banks and obtain trading licenses
MiCA regulation may pose challenges for non-compliant stablecoin issuers, such as the delisting of Tether's EURT stablecoin
MiCA regulation may give compliant stablecoin issuers, such as Circle's EURC stablecoin, an advantage in the EU market