Tether's CEO says the company will not pursue a MiCA license in the EU due to regulatory reserve requirements.
DeFi & Yields ·
Tether's chief executive announced the stablecoin issuer will not seek a Markets in Crypto-Assets Regulation (MiCA) license in the European Union, citing regulatory requirements around reserve composition. The decision centers on EU rules mandating that a portion of stablecoin reserves be held in commercial bank deposits, a constraint the company determined incompatible with its operations.
The MiCA framework, which establishes licensing and operational standards for crypto-asset service providers across the EU, includes reserve requirements designed to protect holders of euro-backed stablecoins. The 60% commercial bank deposit requirement has been a point of friction between regulators and issuers, though proposals to modify or remove this threshold have emerged from discussions involving the European Central Bank.
Tether's decision to forgo EU licensing means the company will not operate as a regulated stablecoin issuer within the bloc's regulatory perimeter. It remains unclear whether this stance reflects a permanent position or could shift if reserve rules are relaxed, and whether Tether intends to serve EU users through alternative channels outside the formal MiCA framework.