(Tether USDT) Information

Tether (USDT) Market Takes $$ 2 Billion Hit

December 30, 2024, 10:00 AM -03

December 30, 2024, 10:07 AM -03

IN BRIEF

EU MiCA regulations prompted exchanges to delist USDT from Tether, causing a $$ 2 billion drop in market cap.

Despite regulatory pressure, the stablecoin remains dominant and trading volumes remain strong.

Tether scales back EU operations, invests in MiCA-compliant stablecoins to address regulatory challenges.

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Tether, the world’s largest stablecoin, lost $$ 2 billion of its market value in December due to challenges posed by the European Union’s new Markets in Crypto-Assets (MiCA) regulation.

The MiCA regulatory framework will come into effect on December 30, 2024.

Exchanges delist USDT ahead of MiCA

MiCA rules require stablecoin issuers to obtain certain licenses to operate in the European Union. Tether has apparently failed to meet the industry’s stringent requirements, which could jeopardize its future in the jurisdiction.

As a result, European exchanges have begun delisting Tether’s USDT stablecoin in anticipation of the regulatory crackdown.

In response, according to CoinMarkCap, USDT's market cap fell from $$ 140.5 billion to $$ 138 billion in the past week, the largest drop in a year of continued growth.