Tether CEO Paolo Ardoino has criticized the EU's Markets in Crypto-Assets (MiCA) regulation, labeling it "very dangerous" for stablecoins. Ardoino explained that Tether has not applied for a MiCA license due to concerns that the regulation could require issuers to hold 60% of reserves in uninsured cash deposits at small European banks. He warned that these banks might struggle with large-scale redemptions, posing risks to stablecoin stability.
Ardoino described the MiCA legislation as "poorly thought out" and emphasized that Tether's decision to bypass the regulation is aimed at protecting its over 400 million users. The CEO's comments highlight ongoing debates about regulatory approaches to stablecoins in the European Union.
Tether CEO Criticizes EU MiCA Regulation as 'Very Dangerous' for Stablecoins
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