#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 encourage EU exchanges to adjust their offerings, favoring the growth of compliant stablecoins. For instance, compliant stablecoins like Circle's EURC will gain traction, while non-compliant stablecoins like Tether's EURT face challenges. Tether has discontinued its EURT stablecoin and delisted it from several 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 substantial reserves in European banks and obtain trading licenses, which would benefit compliant stablecoins, such as Circle's EURC, while posing challenges to non-compliant stablecoins, such as Tether's EURT. Tether has already discontinued 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 Asian markets. Tether's investments in MiCA-compliant stablecoin issuers, such as Quantoz Payments and StablR, demonstrate 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 their application in the EU market.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
The EU MiCA regulation could promote the development of euro-denominated stablecoins, as the regulation requires stablecoin issuers to hold large reserves in European banks and obtain trading licenses, which would benefit compliant stablecoins such as Circle's EURC.
MiCA regulation could pose challenges for non-compliant stablecoins, such as Tether's EURT, as they would need to meet new regulatory requirements, such as holding reserves in European banks.
Stablecoin issuers like Tether may need to adjust their operations to comply with MiCA regulations, such as discontinuing their euro stablecoin EURT and investing in MiCA-compliant stablecoin issuers.
Despite the new requirements imposed on stablecoin issuers by MiCA regulations, Tether remains a 'dominant force' in the global stablecoin market and is widely used in less restrictive Asian markets.