Golden Finance reported that Paolo Ardoino, CEO of Tether, said in an interview with Cointelegraph that the EU Crypto-Asset Market (MiCA) regulation poses systemic risks not only to stablecoins but also to the broader banking system. Ardoino said: "My dissatisfaction with MiCA is that instead of making the system safer, it actually creates a huge systemic risk." The MiCA regulation came into effect on June 30, imposing strict restrictions on stablecoin operations throughout the European Economic Area. Notably, the regulation stipulates that at least 60% of the reserves supporting stablecoins must be held in EU bank accounts. Ardoino emphasized that financial institutions practice a fractional reserve banking system, where only a small portion of deposits are available for withdrawal at any given moment, which makes them vulnerable to bank runs.