#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 favor compliant stablecoins, such as Circle's EURC, while posing challenges for non-compliant ones like Tether's EURT. Tether has discontinued its EURT stablecoin and delisted it from several EU exchanges, but it 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 will prompt EU exchanges to adjust their products and drive the development of compliant stablecoins. For example, Circle's EURC stablecoin has gained an advantage due to its compliance with MiCA standards, while Tether's EURT stablecoin faces challenges due to non-compliance and has ultimately been forced to stop issuance. Although Tether remains the "dominant force" in the global stablecoin market, it is widely used in less regulated markets such as Asia. Notably, Tether has invested in MiCA-compliant stablecoin issuers, indicating its commitment to maintaining a presence in the EU. Overall, the implementation of MiCA regulations will drive the development of euro-denominated stablecoins and bring new opportunities to the EU financial 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, which will benefit compliant stablecoins, such as Circle's EURC
MiCA regulation may lead to non-compliant stablecoins, such as Tether's EURT, facing challenges, or even being forced to exit the EU market
Tether's investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining its presence in the EU