The European Union intends to exclude USDT from cryptocurrency exchange listings by the end of 2024 due to non-compliance with the MiCA regulatory requirements. This step could significantly impact the balance of power in the crypto industry.
And while Circle, which issues USDC, received the necessary approvals back in July, Tether seems to find itself in a difficult situation. And how could it not be — after all, we are talking about a stablecoin with a market capitalization of $140 billion! When looking at trading volumes, the picture is even more impressive: out of a total trading volume of $385 billion in a day, USDT accounts for $218 billion. For comparison, Bitcoin only has $110 billion, while USDC is a modest $15 billion.
However, Tether seems to have found an elegant solution. The company decided to invest in the European StablR, which already obtained the necessary license in Malta this summer. To ensure this, they announced a partnership with Quantoz Payments to issue new stablecoins EURQ and USDQ on their Hadron platform.
However, market participants view the situation without much optimism. In their opinion, the delisting of USDT could turn Europe into a cryptocurrency province — and this is at a time when the US seems ready to adopt a more crypto-friendly approach. The appointment of Howard Lutnick as the head of the Department of Commerce is particularly significant — he is the CEO of Cantor Fitzgerald, the company that holds Tether treasury bills worth $85 billion!
Experts emphasize the absurdity of the situation: European regulators are effectively putting obstacles in the way of their own traders. After all, most crypto assets are traded in pairs with USDT, and a transition to other stablecoins will inevitably lead to additional costs.
It seems that in the pursuit of regulatory clarity, Europe risks being left behind in cryptocurrency progress. While the US shows signs of softening its stance towards the crypto industry, the European market may face a significant outflow of liquidity.
