There’s significant news regarding stablecoins in the European Union as Tether ($USDT) faces potential regulatory challenges under the upcoming Markets in Crypto-Assets (MiCA) rules. While Tether is not becoming "illegal" on December 30, 2024, providers like Tether must comply with MiCA regulations within a 6-18 month transition period. Some exchanges, such as Coinbase, are preemptively delisting $USDT, while others are waiting for further clarification. If Tether fails to meet regulatory requirements during the transition, $USDT would be deemed non-compliant rather than illegal, though EU exchanges may still choose to delist it to avoid penalties. This situation presents an opportunity for compliant alternatives, such as Ripple’s $RLUSD stablecoin, to capture market share as a reliable option for EU users. The question remains whether Tether can comply with the new rules or if compliant alternatives will take over the market.
