EU Approves 10 Stablecoin Issuers, Leaves Out Tether

The European Union (EU) has recently approved 10 stablecoin issuers under its Markets in Crypto-Assets (MiCA) regulations, a significant move that has sparked discussions about the EU's regulatory approach and its potential impact on the cryptocurrency market. Notably, Tether, the issuer of USDT, was left out of the approved list, raising questions about the reasons behind its exclusion and the implications for the cryptocurrency market.

The MiCA regulations, introduced by the European Union, aim to establish clear legal guidelines for crypto assets, including stablecoins, utility tokens, and crypto service providers. The framework seeks to protect investors, promote financial stability, and foster innovation in the digital asset market. Key aspects of MiCA include licensing for crypto companies, stablecoin issuer requirements, consumer protection measures, market manipulation prevention, and environmental impact reporting.

The EU's decision to approve 10 stablecoin issuers under MiCA has significant implications for the cryptocurrency market. The approved issuers include Banking Circle, Circle, Crypto.com, Fiat Republic, Membrane Finance, Quantoz Payments, Schuman Financial, Societe Generale, StabIR, and Stable Mint. These firms have introduced a total of 15 stablecoins, with 10 pegged to the euro and five pegged to the U.S. dollar. The exclusion of Tether, the world's largest stablecoin issuer, has led to concerns about the future of USDT in the EU market and the potential impact on other stablecoin issuers.

The exclusion of Tether from the approved list has raised questions about the reasons behind its omission. Industry experts have suggested that potential compliance issues may have played a role in the decision. Prior to the MiCA compliance deadline in December 2024, several crypto platforms began delisting USDT and other non-compliant U.S.-pegged stablecoins for EU users. Tether criticized these actions, describing them as "rushed and unwarranted."

The EU's proactive stance on crypto regulation aims to provide oversight and consumer protection. However, critics argue that excessive regulation could stifle innovation and economic growth. The MiCA framework imposes strict conditions on stablecoin issuers, raising questions about whether these measures will stabilize the market or limit competition. While supporters believe that MiCA offers much-needed regulatory clarity, detractors fear it may create bureaucratic hurdles