#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 EU exchanges, while non-compliant stablecoins like Tether's EURT face challenges. Tether has discontinued its EURT stablecoin and delisted it from several EU exchanges, but it is still maintaining its presence in the EU market by investing in MiCA-compliant stablecoin issuers, such as StablR.
Ace Hot Topic Analysis
Analysis
The MiCA regulation, which came into effect on December 30th, could promote the development of euro-denominated stablecoins. In a recent research report, JPMorgan pointed out that the MiCA regulation requires stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses, which will prompt EU exchanges to adjust their products and drive the development of compliant stablecoins. For example, compliant stablecoins like Circle's EURC will gain more power, while non-compliant stablecoins like Tether's EURT will face challenges. Tether has discontinued its EURT stablecoin and delisted from multiple EU exchanges, but it 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 like Quantoz Payments indicates its commitment to maintaining a presence in the EU. In conclusion, the implementation of the MiCA regulation will drive the development of euro-denominated stablecoins and promote the standardization of the EU stablecoin 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