Tether CEO calls EU MiCA law a risk to stablecoins

Paolo Ardoino, CEO of USDT issuer Tether, described the European Union's Markets in Crypto-Assets (MiCA) regulation as "very dangerous for stablecoins," explaining why the company has not applied for a license. According to the crypto newsletter Coin Bureau, Ardoino stated that MiCA could force stablecoin issuers to hold 60% of their reserves in the form of deposits at small European banks, which would not be covered by depositor protection. He warned that these smaller banks could struggle to handle a sudden wave of requests from holders looking to convert their USDT into fiat currency. Ardoino added that MiCA was enacted without sufficient review and that the decision not to apply for a license was made to protect over 400 million users.