Tether has faced significant challenges recently due to the delisting of the USDT stablecoin linked to the MiCA regulations in the EU. Two major exchanges, Coinbase and Crypto.com, have removed USDT from their platforms in light of these changes.

A company spokesperson voiced their concerns, saying:

“It is disappointing to see the rushed actions brought on by statements which do little to clarify the basis for such moves.”

Tether fears that these regulatory adjustments could impose substantial risks on EU investors, worrying that it affects a variety of tokens in the market:

“These changes affect many tokens in the EU market, not only USDT, and we fear that such actions will lead to further risk being placed on consumers in the EU.”

The EU Regulator has mandated crypto exchanges to delist Tether’s USDT by January 31, 2025, stating that MiCA could hinder innovation within the stablecoin sector. This has sparked a debate about the implications of delisting USDT, with critics like Tether’s CEO, Paolo Ardoino, arguing that it could diminish liquidity and complicate cross-border transactions.

Marina Markezic from the European Crypto Initiative praises the MiCA initiative for creating opportunities for crypto businesses across the EU:

“Despite challenges, MiCA creates a great opportunity for crypto businesses to operate more efficiently across European markets.”

Contrarily, some industry professionals, including Andreas Garner, express skepticism about whether MiCA will effectively support EU companies in reaching the global market due to its stringent compliance requirements:

“As MiCA Regulation is designed as an EU market access regulation, with a high compliance burden (and costs), we are very skeptical that the framework will allow EU/EEA companies to target the global market in an efficient manner.”

Ultimately, Tether remains disheartened by these developments but acknowledges the decision of EU regulators to establish a structured environment for digital assets as vital for fostering wider adoption.