#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 poses a challenge for non-compliant stablecoins like Tether, while giving an advantage to compliant stablecoins like Circle's EURC. Tether has already discontinued its EURT stablecoin and delisted from several EU exchanges. Despite this, Tether remains the "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 substantial reserves in European banks and obtain trading licenses. This will prompt EU exchanges to adjust their products, favoring compliant stablecoins such as Circle's EURC, while posing challenges for non-compliant stablecoins like Tether's EURT. Tether has discontinued its EURT stablecoin and delisted from multiple EU exchanges, but it remains dominant in the Asian market and has invested in MiCA-compliant stablecoin issuers, indicating its commitment to maintaining a presence in the EU. The implementation of MiCA regulations will drive the development of euro-denominated stablecoins and bring new opportunities to the European financial market.
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 give compliant stablecoins like Circle's EURC an advantage, while non-compliant stablecoins like Tether's EURT face challenges
Tether and other stablecoin issuers may maintain their presence in the EU by investing in MiCA-compliant stablecoin issuers