Paolo Ardoino warns that the EU’s information policy could harm crypto markets.
Ardoino criticizes the Digital Services Act (DSA).
He raises concerns about the MiCA regulation’s impact on the stability of the EU banking sector.
Paolo Ardoino, the CEO of Tether, expressed concerns about the European Union’s (EU) information policy, arguing that its restrictive nature could impact transparency and regulatory clarity within the crypto market.
Tether CEO Paolo Ardoino has raised concerns about the European Union’s (EU) information policy. He argues that its restrictive nature could impact transparency and regulatory clarity within the crypto market. “EU information policy: you’ll know nothing and be happy,” Ardoino stated on X (formerly Twitter).
His critique follows an official letter from EU industry chief Thierry Breton to Elon Musk’s social media platform, X, particularly in light of a planned live conversation between a U.S. presidential candidate and Musk himself. The letter, dated August 12, 2024, outlines the EU’s expectations for content moderation on platforms like X under the Digital Services Act (DSA).
Breton emphasized the EU’s commitment to ensuring online platforms comply with the DSA, which protects public discourse from harmful content, such as disinformation and hate speech.
The policy mandates effective content moderation, transparency in dealing with flagged content, and platform accountability. Non-compliance could lead to legal actions and increased scrutiny, particularly if illegal content on these platforms spills into the EU, potentially inciting violence or unrest.
However, Ardoino believes this policy could negatively affect transparency and clarity in the cryptocurrency market. He warns that the EU’s strict regulatory approach could lead to excessive content censorship, potentially limiting public access to crucial information. This could, in turn, have a chilling effect on the transparency necessary for financial markets, especially in the crypto space, to function properly.
Ardoino also criticized the recently implemented Markets in Crypto-Assets (MiCA) regulation, which places strict requirements on stablecoin operators like Tether. He believes these regulations could introduce significant risks, particularly within the banking sector.
He explained that the MiCA regulation, which requires 60% of stablecoin reserves to be held in EU bank accounts, could destabilize rather than secure the financial system. Drawing parallels with the recent collapse of Silicon Valley Bank, Ardoino suggests that similar risks could emerge within the EU banking sector due to these new rules.
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