USDT’s Legal Status Under MiCA Remains Uncertain

The lack of clear guidance from officials leaves the future of the USDT stablecoin in the EU ambiguous following the full implementation of the MiCA legislation. This was stated by Juan Ignacio Ibañez, a member of the MiCA Crypto Alliance’s technical committee, in an interview with Cointelegraph.

“No regulator has explicitly stated that USDT does not meet the requirements, but that does not imply the opposite either,” he noted.

According to Ibañez, the delisting of the stablecoin on the Coinbase exchange is a proactive measure, and other exchanges are not obliged to act so swiftly. He emphasized that the crucial point is the date MiCA comes into effect—December 30.

“The question is whether all exchanges will simultaneously delist USDT, whether this will happen gradually, or if some companies will adopt a ‘wait and see’ approach, awaiting statements from regulators,” Ibañez added.

European regulators have not officially announced the necessity of delisting the stablecoin. As of December 27, many exchanges, including Binance, continue to offer EU clients access to USDT and have not announced plans to halt these services.

According to officials’ plans, an 18-month “transition period” will commence after MiCA comes into effect. EU countries may allow existing businesses to continue operating under current legislation until January 1, 2026.

By the end of this period, a comprehensive regulatory regime in line with common client protection standards should be established in the EU.

In the view of Tether CEO Paolo Ardoino, MiCA poses a “systemic risk” not only to stablecoins but also to the banking system as a whole. He specifically pointed to the requirement to hold at least 60% of reserves in accounts at potentially “vulnerable” EU banks.

Back in November, Kraken and Tether funded the launch of EU-regulated stablecoins.