Tether CEO Paolo Ardoino expressed concerns over MiCA's provisions, stating they complicate EU-licensed stablecoins' operations and introduce new risks to banking infrastructure and stablecoins.
Tether plans to introduce a technological solution for the European market in response to MiCA challenges, although details have not been disclosed yet.
The reserve management requirement in MiCA, which mandates that 60% of reserves be held in bank deposits, contradicts Tether's diversified risk management strategy.
Given USDT's $118 billion market cap, the deposit insurance limit of €100,000 in the EU raises substantial risks for the stability of both banking and stablecoins.
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