EU Approves 10 Stablecoin Issuers Under MiCA – But WHY Was Tether Left OUT?
The European Union (EU) has granted approval to 10 stablecoin issuers under its Markets in Crypto-Assets (MiCA) regulations, notably excluding Tether, the issuer of USDT . This decision has sparked discussions about the EU's regulatory approach and its potential impact on the cryptocurrency market, particularly the implications for Tether after its exclusion. Here are more details, starting with details concerning the MiCA regulations, its importance for the EU and the global crypto market, and the approved stablecoins issuers. Followed by some expert analysis on this move for the stablecoins, the cryptocurrencies' future, and the future of the EU crypto market.
The Markets in Crypto-Assets (MiCA) Regulations are a comprehensive regulatory framework introduced by the European Union (EU) to oversee crypto assets , including stablecoins, utility tokens, and crypto service providers. MiCA aims to establish clear legal guidelines, protect investors, and promote financial stability while fostering innovation in the digital asset market.
MiCA is expected to reshape the European crypto market by enforcing compliance, ensuring stability, and limiting the dominance of unregulated stablecoins.
On February 20, 2025, the European Securities and Markets Authority (ESMA) released a list of 10 firms authorized to issue stablecoins within the EU under the MiCA framework. These firms include Banking Circle, Circle, Crypto.com, Fiat Republic, Membrane Finance, Quantoz Payments, Schuman Financial, Societe Generale, StabIR, and Stable Mint. Collectively, they have introduced 10 euro-pegged stablecoins and five U.S. dollar-pegged stablecoins. Conspicuously absent from this list is Tether, the world's largest stablecoin by market capitalization, exceeding $141 billion.
The omission of Tether from the approved list has led to significant consequences within the EU's cryptocurrency landscape. Prior to the MiCA compliance deadline in December 2024, several crypto platforms began delisting USDT and other non-compliant U.S.-pegged stablecoins for EU users. Tether criticized these actions, describing them as "rushed and unwarranted."
Industry experts have expressed concerns that MiCA's stringent regulations might isolate the European crypto market . Natalia Łątka, Director of Public Policy and Regulatory Affairs at Merkle Science, warned that such regulations could deter foreign firms from operating in the region and might prompt local crypto companies to relocate to more lenient jurisdictions.
The EU's proactive stance on crypto regulation aims to provide oversight and consumer protection. However, critics argue that excessive regulation could stifle innovation and economic growth. Professor Steve Hanke has pointed to overregulation as a contributing factor to the EU's slower GDP growth compared to the United States.
The MiCA framework imposes strict conditions on stablecoin issuers, raising questions about whether these measures will stabilize the market or limit competition. While supporters believe that MiCA offers much-needed regulatory clarity, detractors fear it may create bureaucratic hurdles that push innovation outside the EU.
Bitcoin Holds Steady as Analysts Predict Surge Past $100K, Ethereum Eyes $3K
Bitcoin sustains its position within a closed zone of movement thus preserving a duration of minimal price volatility. Market analysts expect the current period of consolidation to result in an important market breakout according to trader observations. Bitcoin demonstrates technical evidence showing a path to cross $100,000 and Ethereum indicates the capability to surpass $3,000.
Multiple indicators currently suggest that Ethereum will experience an upward price resurgence. TD Sequential indicator revealed an hourly buying signal capable of signaling a new market trend direction. Technical analysis highlights that Ethereum might be preparing for an important market movement based on this widely applied indicator. Research suggests investors are examining the token area near essential support elements because it shows promise of becoming a desirable market entry point.
It's the boring state for #Bitcoin . The good part is: Bitcoin goes up slightly, #Altcoins go up significantly more. I think that we'll continue to see that. #Bitcoin above $100K #Ethereum above $3K pic.twitter.com/a8Rwfi9xYb
Some analysts warn against shorting during periods of low volatility. Historical data from Bollinger Band width patterns indicates that extremely low volatility markets have rarely favored short sellers. Instead, traders who remain patient have historically seen stronger returns when a breakout occurs.
External economic conditions beyond Bitcoin affect how its value performs on the market. Numerous experts identify quantitative easing programs of central banks as one of the factors that could affect Bitcoin prices. The U.S. Treasury’s general account liquidity concerns tracked down by BitMEX CEO Arthur Hayes may be one reason market sentiment remains low during early 2025.
The Strategic Bitcoin Reserve initiative of the Trump administration causes investors to doubt because of its lack of clarity. Insufficient movement on the Strategic Bitcoin Reserve initiative by the Trump administration contributes to institutional investors’ reluctance which affects Bitcoin’s market stability.
Bitcoin continues to experience consolidation so altcoins show potential for price increases. Market analysts observe that during Bitcoin stability periods the altcoin market usually generates robust momentum. Technical indicators for Ethereum reveal a crucial point of observation because the asset registered a buy signal followed by a distinct setup.
The ongoing movement stagnation within Bitcoin tests the emotional tolerance of investors at present. Past data indicates that such consolidation phases tend to lead to substantial price fluctuations. Active market participants track the potential for upcoming price breakthroughs in their trading analysis.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.