#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. 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 offerings and favor compliant stablecoins, such as Circle's EURC. Non-compliant stablecoins like 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 less regulated 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 implementation of the EU's new MiCA regulation could promote the development of euro-denominated stablecoins. In a recent research report, JPMorgan pointed out that MiCA regulations require stablecoin issuers to hold substantial 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 already stopped its EURT stablecoin and delisted from multiple EU exchanges. Nevertheless, Tether remains the "dominant force" in the global stablecoin market and is widely used in less restrictive Asian markets. Tether's investment in MiCA-compliant stablecoin issuers also indicates its commitment to maintaining its presence in the EU. Overall, the implementation of MiCA regulations 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, which will give compliant stablecoins an advantage, such as Circle's EURC
MiCA regulation may lead to challenges for non-compliant stablecoins, such as Tether's EURT being discontinued
Tether's investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining a presence in the EU