Tether opts out of EU stablecoin regulation’s license over 60% bank rule - The Cryptonomist

Tether has reportedly decided against pursuing a license under the European Union's Markets in Crypto-Assets (MiCA) framework, citing a requirement that stablecoin issuers hold at least 60% of reserves in bank deposits. That threshold conflicts with Tether's long-standing reserve model, which leans heavily on short-term government debt and other non-cash instruments rather than bank deposits.

The decision matters beyond one company. MiCA establishes a unified licensing regime for stablecoin issuers serving EU users, so opting out could affect how USDT — the largest stablecoin by market value — is offered within the bloc. It also highlights a broader tension between EU reserve rules and the treasury-heavy structures many large issuers prefer.

What to watch: how EU exchanges and custodians adjust access to USDT for European customers, whether Tether pursues an alternative compliance route, and whether other issuers follow suit or adapt their reserves. For market participants, the episode is a reminder that stablecoin regulation is now a competitive variable, not just a compliance detail.