#EU 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 posing challenges for non-compliant stablecoins like Tether's EURT. Tether has already 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, prompting 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 stablecoins like Tether, leading to the discontinuation of its EURT stablecoin and its delisting from multiple EU exchanges. However, Tether remains a "dominant force" in the global stablecoin market and is widely used in less restrictive markets like Asia. 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 empower compliant stablecoins like Circle's EURC and foster the growth of euro-denominated stablecoins.
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 will pose challenges to non-compliant stablecoin issuers, such as Tether's EURT, which has stopped issuing
Tether's investment in MiCA-compliant stablecoin issuers indicates its commitment to maintaining its presence in the EU