#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 give compliant stablecoins, such as Circle's EURC, an advantage in the regulated market, while non-compliant stablecoins like Tether's EURT face challenges. Tether has discontinued its EURT stablecoin and delisted it from several EU exchanges, but its investment in stablecoin issuers that meet MiCA standards indicates its commitment to maintaining a presence in the EU.
Ace Hot Topic Analysis
Analysis
The entry into force 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 will prompt EU exchanges to adjust their products and give compliant stablecoins like Circle's EURC an advantage, while non-compliant stablecoins like Tether's EURT face challenges. 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 investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining its presence in the EU. The implementation of MiCA regulations will drive the development of euro-denominated stablecoins and could bring new opportunities to European financial markets.
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 has prompted EU exchanges to adjust their products, which is beneficial to compliant stablecoins, such as Circle's EURC
Non-compliant stablecoins, such as Tether, face challenges
For example, Tether has stopped its EURT stablecoin and led to USDT being delisted from multiple EU exchanges