#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 prompt EU exchanges to adjust their offerings and drive the growth of compliant stablecoins like Circle's EURC. Non-compliant stablecoins, such as Tether's EURT, face challenges. Tether has discontinued its EURT stablecoin and delisted it from multiple 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 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 the MiCA regulation requires only compliant stablecoins to be used as trading pairs in regulated markets, which will prompt EU exchanges to adjust their offerings. The regulation mandates stablecoin issuers to hold substantial reserves in European banks and obtain trading licenses. This has posed challenges for non-compliant stablecoin issuers like Tether, leading to the discontinuation of its EURT stablecoin and the delisting of USDT from multiple EU exchanges. Despite this, 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 a presence in the EU. The implementation of the MiCA regulation could potentially drive the development of euro-denominated stablecoins and bring new opportunities to the EU 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, which will benefit compliant stablecoin issuers, such as Circle's EURC
MiCA regulation may lead to challenges for non-compliant stablecoin issuers, such as Tether's EURT, and even force them to exit the EU market
Tether's investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining its presence in the EU