Tether opts out of EU stablecoin regulation’s license over 60% bank rule - The Cryptonomist

Tether has decided against seeking a license under the European Union's Markets in Crypto-Assets (MiCA) framework, reportedly due to a requirement that stablecoin issuers hold at least 60% of reserves in EU-regulated bank deposits. The rule, part of the EU's broader effort to standardize stablecoin oversight, would significantly alter Tether's current reserve composition, which relies heavily on short-term U.S. Treasury bills and other non-bank assets.

For the market, the move highlights a growing divergence between U.S.-dominated stablecoin operations and Europe's stricter regulatory approach. Tether remains the largest stablecoin by market capitalization, widely used for trading pairs and cross-border settlement. Its opt-out could reduce its direct presence in EU markets, potentially opening space for MiCA-compliant alternatives such as Circle's EURC or other euro-denominated tokens.

What to watch: whether EU exchanges delist USDT or restrict access for European users, and how Tether's reserve strategy evolves in response. The decision also raises questions about liquidity fragmentation between regions — a key consideration for traders and institutions monitoring stablecoin flows.