#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 already discontinued its EURT stablecoin and delisted it from several EU exchanges. Despite this, 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 requires stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses, which will pose challenges for non-compliant stablecoins while giving compliant ones an advantage. For example, Tether was forced to stop issuing its EURT stablecoin and delist from multiple EU exchanges due to its non-compliance with MiCA, while compliant stablecoins like Circle's EURC have gained opportunities for growth. Although Tether remains a "dominant force" in the global stablecoin market, its investment in stablecoin issuers that meet MiCA standards indicates its commitment to maintaining a presence in the EU. Overall, the implementation of MiCA will drive the euro-denominated stablecoin market towards compliance and promote its healthy development within the EU.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
The EU MiCA regulation could promote the development of euro-denominated stablecoins.
MiCA regulations require stablecoin issuers to hold large reserves in European banks and obtain trading licenses, which will drive the development of compliant stablecoins, such as Circle's EURC.
MiCA regulations could pose challenges to non-compliant stablecoins, such as Tether's EURT, and even force them to exit the EU market.
Stablecoin issuers like Tether are investing in MiCA-compliant stablecoin issuers, indicating their commitment to maintaining a presence in the EU market.