#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 encourage EU exchanges to adjust their offerings, favoring compliant stablecoins like Circle's EURC while posing challenges for non-compliant ones like Tether's EURT. Tether has already discontinued its EURT stablecoin and delisted it from multiple EU exchanges. Nevertheless, Tether remains a "dominant force" in the global stablecoin market and is widely used in less restrictive markets like Asia. Tether's investment in MiCA-compliant stablecoin issuers 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 promote 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, which will prompt EU exchanges to adjust their products and benefit compliant stablecoins, such as Circle's EURC. Non-compliant stablecoins like Tether face challenges, as Tether has already discontinued its EURT stablecoin and delisted from multiple EU exchanges. Although Tether remains the "dominant force" in the global stablecoin market, it is widely used in less restrictive Asian markets and has invested in MiCA-compliant stablecoin issuers, indicating its commitment to maintaining a presence in the EU. The implementation of MiCA will drive the development of euro-denominated stablecoins and bring new opportunities to the EU 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 lead to compliant stablecoins (such as Circle's EURC) gaining an advantage, while non-compliant stablecoins (such as Tether's EURT) face challenges
Tether and other stablecoin issuers may maintain their presence in the EU by investing in stablecoin issuers that meet MiCA standards