As the European Union’s cryptocurrency regulations, known as MiCA (Markets in Crypto-Assets Regulation), are set to take full effect on December 30, uncertainty looms over Tether’s USDt stablecoin. Despite Coinbase’s decision in mid-December to delist USDt , the stablecoin continues to trade across European exchanges, leaving many investors and traders questioning its future within the EU. MiCA Regulatory Clarity Still Missing for USDt The absence of clear guidance from EU regulators has left the stablecoin in a state of limbo. While no official statement has been made declaring USDt non-compliant with MiCA , its status remains unclear. Juan Ignacio Ibañez, a member of the MiCA Crypto Alliance, said in a recent interview that just because regulators have not explicitly stated USDt’s non-compliance does not necessarily mean it complies either. He suggested that exchanges may be adopting a “wait-and-see” approach, anticipating further clarity from European authorities. For now, many European exchanges, such as Binance and Crypto.com, continue to offer USDt trading. Ibañez speculated that Coinbase’s delisting decision could be driven by a desire to avoid regulatory risks ahead of the MiCA deadline, but he noted that not all exchanges are taking the same route. The real question remains whether European regulators will issue a directive by December 30, causing mass delistings, or whether exchanges will gradually pull USDt from their platforms based on evolving regulatory stances. Regulatory Silence Sparks Speculation The uncertainty around USDt’s future in Europe stems from conflicting reports. Some outlets, including Bloomberg, have suggested that European exchanges will be required to delist USDt after December 30, 2024. However, European regulators, including the European Securities and Markets Authority (ESMA), have refrained from confirming whether USDt falls under MiCA’s restrictions. Despite this, reports indicate that Tether’s USDt could face an eventual ban across Europe, though no official confirmation has been made. In a statement in October 2024, ESMA clarified that it was still working with market participants to address issues related to stablecoins, without providing concrete answers regarding USDt. As the MiCA regulations prepare to go live, all eyes will be on European regulators for guidance on how they will handle Tether’s status. In the absence of definitive regulatory action, the future of USDt in the European market remains shrouded in uncertainty. With the MiCA deadline fast approaching, crypto exchanges, investors, and regulators alike are waiting for the next move. The post Tether’s Fate in the EU Uncertain as MiCA Deadline Approaches appeared first on TheCoinrise.com .
