USDT News: Tether's Stablecoin Faces Potential Delisting Risks in the EU

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Celebrating a Decade of USDT

Yesterday marked the 10th anniversary of USDT, Tether's flagship stablecoin. To commemorate this milestone, Tether announced the upcoming release of a documentary titled 'Stability and Freedom in Chaos', highlighting USDT's global impact as a financial lifeline.

🎬 Today marks 10 years of USD₮!
Dive into the journey of how USDT has fought inflation and fueled financial freedom worldwide.
— Tether (@Tether_to) October 6, 2024

MiCA Compliance: A Looming Deadline for USDT

The EU’s Markets in Crypto-Assets (MiCA) regulation is now in effect, with stablecoin rules requiring full compliance by December 30, 2024. As the world’s leading stablecoin, USDT faces a critical challenge: its issuer, Tether, lacks formal recognition as an e-money issuer under EU law.

Key Issues:

👉 How MiCA reshapes crypto regulations in Europe


Tether’s Proposed Solution

CEO Paolo Ardoino confirmed Tether is developing a tech-driven solution tailored for the European market, potentially launching by November 2024. While details remain undisclosed, the initiative aims to:

  1. Align USDT with MiCA’s requirements.
  2. Prevent disruptions for EU users.
"Certain aspects of MiCA introduce complexities for stablecoins and local banking infrastructure."
— Tether’s statement

Risks and Uncertainties

Tether warns that MiCA’s framework could inadvertently create systemic risks, such as:

Despite these concerns, Tether acknowledges MiCA’s role in providing regulatory clarity.


USDT’s Evolution: From Omni to Global Dominance

Launched on October 6, 2014, USDT originally operated on Bitcoin’s Omni Layer. Key milestones:
| Year | Market Cap | Event |
|------|-----------|-------|
| 2014 | $300K | Launch |
| 2017 | $1B | First bubble |
| 2022 | $80B | Peak before bear market |
| 2024 | $120B | Current valuation |

Today, USDT spans multiple blockchains, though **$900M remains on Omni**. Its value stability ($1 peg) contrasts with explosive adoption.


FAQ Section

Q: Will USDT be banned in the EU?
A: Not banned, but non-compliant versions risk delisting post-December 2024.

Q: How will Tether’s solution work?
A: Details are pending, but it involves technical adjustments for EU compliance.

Q: Why is MiCA controversial?
A: Critics argue it could destabilize banks and limit stablecoin utility.

👉 Explore crypto’s regulatory future


Authored by Marco, Italy’s first Bitcoin YouTube commentator and founder of ilBitcoin.news.


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