Tether logo on a website, seen on a computer screen through a magnifying glass. Source: Dennis - stock.adobe.com

Key Takeaways:

MiCA Uncertainty: USDT’s compliance with the EU’s Markets in Crypto-Assets Regulation (MiCA) remains unclear, with regulators yet to confirm its status.
Mixed Market Response: While Coinbase delisted USDT over compliance concerns, major European exchanges like Binance EU and Crypto.com continue to list it.
Regulatory Silence: ESMA has refrained from commenting on USDT’s status, adding to the speculation about its future in the European market post-MiCA implementation.

As the European Union’s Markets in Crypto-Assets Regulation (MiCA) nears full implementation on December 30, 2024, questions remain about Tether’s USDT stablecoin compliance.

Earlier this month, U.S.-based exchange Coinbase delisted USDT, citing MiCA-related concerns, while European platforms like Binance EU and Crypto.com continue to list it, awaiting regulatory guidance.

On December 30th USDT will be delisted from EU exchanges.

Not spreading FUD, but why not diversify your USDT into a few different stable coins. pic.twitter.com/Dg0q52uEWs
— MMCrypto (@MMCrypto) December 27, 2024

Despite the European Securities and Markets Authority (ESMA) declining to comment on USDT’s compliance in October, the agency is working with market participants to address stablecoin-related challenges.

Industry stakeholders remain uncertain whether silence from EU regulators implies non-compliance or unresolved ambiguity.

Reports suggest USDT could face delisting in Europe after MiCA’s deadline, though no major exchanges have announced such plans.

The situation underscores a broader need for regulatory clarity as MiCA’s 18-month transitional phase unfolds.

Exchanges and market participants continue to navigate this uncertain landscape, awaiting definitive rulings on stablecoin compliance under the EU’s evolving crypto framework.