Crypto
- Tether’s market capitalisation slid 1.5% over the last seven days as broader MiCA regulations across crypto asset service providers in the Eurozone kicked in on December 30
- These regulations include stringent rules for global stablecoin providers as some European exchanges have begun to delist USDT
Leading stablecoin Tether (USDT) has lost 1.5% of its market capitalisation over the last seven days, falling to $137.32bn from $139.46bn after broader Markets in Crypto-Assets (MiCA) regulations kicked in on December 30.
Per the regulations, European exchanges have begun to delist USDT from their crypto line-up, directly contributing to USDT’s falling market share and capitalisation.
Crypto MiCA rules around stablecoins
Approved in June 2024, the MiCA regulation framework regulates dollar-denominated stablecoins like USDT and USDC to limit their dominance with the EU. At the same time, it encourages the use of Euro-pegged stablecoins for settlements and transactions.
While dollar-pegged stablecoins are not outrightly banned (users can hold them in decentralized wallets), they are subject to stricter rules (like maintaining a 30% reserve in traditional banks, which could impact cash flow) and are restricted on registered exchanges within the EU.
Comments from industry insiders remain unfazed as the bulk of USDT trading and transactions come from Asia and the US, where USDT is not restricted.
Meanwhile, Tether CEO, Paolo Ardoino, retweeted a post citing that Tether’s daily trading volume outpaced the second-largest stablecoin by 14x by December 31.
— Paolo Ardoino 🤖🍐 (@paoloardoino) December 31, 2024
