MiCA Law "forces" Coinbase, Tether to adjust stablecoin strategies

The MiCA Law (Markets in Crypto-Assets) has compelled companies like Coinbase and Tether to revise their stablecoin strategies to comply with new regulations and ensure the stability of the financial system. This law requires stablecoin issuers to meet stricter standards regarding capital and reserves, thereby providing better protection for investors and preventing potential risks to the financial market.

Specifically, Coinbase has decided to halt its rewards program for USDC holders in the European region to comply with MiCA regulations, as this program is prohibited to protect investors. Tether also has to stop supporting the stability of EURT and shift its focus to developing stablecoins that comply with MiCA law, such as EURQ and USDQ, demonstrating that adaptation to new legal requirements is necessary.

These changes reflect the strong impact and mandatory requirements from the MiCA law on businesses in the cryptocurrency industry, as well as the restructuring to align with the increasingly stringent legal environment in Europe.