#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 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 discontinuation of its EURT stablecoin and delisting from multiple 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 indicates its commitment to maintaining a presence in the EU.
Ace Hot Topic Analysis
Analysis
The implementation of the EU's new MiCA regulation could promote the development of euro-denominated stablecoins. In a research report, JPMorgan pointed out that MiCA regulations require stablecoin issuers to hold significant reserves in European banks and obtain trading licenses, which will give compliant stablecoins an advantage in the regulated market. For example, compliant stablecoins like Circle's EURC will benefit, while non-compliant stablecoins like Tether's EURT will face challenges. Tether has discontinued its EURT stablecoin and delisted from several EU exchanges. Nevertheless, Tether remains the "dominant force" in the global stablecoin market and is widely used in less regulated markets like Asia. Tether's investments in MiCA-compliant stablecoin issuers, such as Quantoz Payments and StablR, indicate its commitment to maintaining a presence in the EU. Overall, the implementation of MiCA regulations will drive the development of euro-denominated stablecoins and promote the stablecoin market towards a more compliant and transparent direction.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
EU MiCA regulation may promote the development of euro-denominated stablecoins, as only compliant stablecoins can be used as trading pairs in regulated markets.
MiCA regulation requires stablecoin issuers to hold large reserves in European banks and obtain trading licenses, leading to challenges for some non-compliant stablecoin issuers, such as Tether discontinuing its EURT stablecoin.
MiCA regulation may lead to more power for compliant stablecoins, such as Circle's EURC, while non-compliant stablecoins like Tether face challenges.
Tether's investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining its presence in the EU.