There are several misconceptions about USDT , USDC , and the MiCA regulation that need clarification:

1. USDT and USDC Are the Same: While both are stablecoins pegged to the US dollar, USDT (issued by Tether) is older and widely traded but criticized for reserve transparency. USDC (issued by Circle with Coinbase) is more transparent and compliant, with regular audits.

2. Fully Regulated Worldwide: USDC aligns with US regulatory standards, while USDT operates in less-regulated environments and faces scrutiny over its reserve practices.

3. MiCA Regulates All Stablecoins Now: MiCA, set to fully take effect in 2024, introduces EU rules on transparency and reserves for stablecoins like USDT and USDC, requiring compliance for EU operations.

4. MiCA Will Ban Non-EU Stablecoins: MiCA does not ban stablecoins but mandates compliance with EU standards, potentially restricting non-compliant issuers in the region.

5. Stablecoins Are Always 1:1 Backed by USD: Both are backed by reserves that include cash and other instruments, but USDC offers detailed audits, unlike USDT.

MiCA’s Impact: MiCA favors transparent stablecoins like USDC, pressuring issuers like Tether to improve reserve and compliance standards. Understanding these nuances helps users navigate the evolving crypto landscape.