Crypto Alert: Impact of Tether's USDT Delisting

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As the MiCA (Market Regulation Authority for Crypto Assets) guidelines came into effect, Coinbase delisted USDT, causing Tether's market value to plummet by $4 billion. This decision has attracted widespread attention in the crypto industry.

MiCA and USDT Delisting

In mid-December 2024, Coinbase delisted USDT from its platform in accordance with the EU's new regulatory standard MiCA. MiCA, which came into effect on December 30, is one of the strictest cryptocurrency regulations in the world. As the main dollar-pegged stablecoin, the delisting of USDT marks a major adjustment in the market.

USDC Market Share Expansion

Circle's USDC, a MiCA-compliant stablecoin, may benefit from the delisting of USDT and gain more market share. Despite this, the European Securities and Markets Authority (ESMA) has not yet made an official statement on USDT's compliance.

The meaning of regulators' silence

Although Coinbase has delisted USDT, platforms such as Binance have not yet taken similar actions. Binance said it will continue to support USDT deposits and withdrawals, and encourages users to use USDC that complies with the MiCA standard. Industry experts believe that regulatory silence does not mean that USDT is compliant, and it may face more challenges in the future.

Tether FUD and market reaction

Samson Mow, CEO of Jan3, said that USDT delisting is more of a "Tether FUD" phenomenon, and other exchanges are unlikely to delist USDT in the short term except Coinbase. Nevertheless, the delisting storm has caused the market value of USDT to fall from US$141 billion to US$137 billion, which may affect the liquidity of the EU market and further consolidate the dominance of the US dollar.

This incident reminds investors that regulatory changes may have a profound impact on the cryptocurrency market, and they need to pay close attention to the implementation of MiCA and the future development of USDT.

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