Bank

2024

USDC

Coin

<ul class="wp-block-list news-points"> 
 <li><strong>Tether CEO warns MiCA’s 60% EU reserve requirement poses systemic risks for stablecoins.</strong></li> 
 <li><strong>Ardoino cites bank instability, like SVB’s collapse, as a risk in MiCA’s stablecoin regulations.</strong></li> 
 <li><strong>Dialogue urged between crypto leaders and EU regulators to secure financial market stability.</strong></li> 
</ul> 
<p>Tether CEO, Paolo Ardoino, has expressed concerns over the European Union’s new Markets in Crypto-Assets <a href="https://coinedition.com/binance-implements-mica-stablecoin-rules-in-europe-cz-addresses-delisting-concerns/">(MiCA) regulation</a>. Ardoino believes that this crypto regulation could create risks for stablecoin operators like Tether and the wider banking sector. Effective from June 30, this regulation imposes strict requirements on the management of stablecoins within the European Economic Area.</p> 
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   <p lang="en" dir="ltr">Tether CEO Paolo Ardoino said that the EU's recently approved MiCA poses a threat to stablecoins. MiCA requires that at least 60% of stablecoin reserves must be held in EU bank accounts. But Silicon Valley Bank collapsed in 2023, and USDC once de-pegged.<a href="https://t.co/f2XuW0T21N" target="_blank" rel="nofollow">https://t.co/f2XuW0T21N</a></p>— Wu Blockchain (@WuBlockchain) <a href="https://twitter.com/WuBlockchain/status/1822090887637475422?ref_src=twsrc%5Etfw" target="_blank" rel="nofollow">August 10, 2024</a>
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<p>The MiCA framework demands that a substantial portion of stablecoin <a href="https://coinedition.com/analyst-predicts-a-stablecoin-explosion-following-the-mica-stablecoin-framework/">reserves</a>, precisely 60%, be held in EU bank accounts. Ardoino has criticized this aspect, suggesting i…</p>
<p>The post <a href="https://coinedition.com/tether-ceo-mica-risks-bank-runs-not-stability/">Tether CEO: MiCA Risks Bank Runs, Not Stability</a> appeared first on <a href="https://coinedition.com">Coin Edition</a>.</p>

Tether CEO: MiCA Risks Bank Runs, Not Stability

Coin Edition

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