Tether CEO Defends MiCA Opposition, Cites Risk to European Banks

Tether CEO Paolo Ardoino has defended his company’s decision not to pursue registration under the European Union’s Markets in Crypto-Assets (MiCA) framework, stating the regulations pose significant risks to stablecoins. Speaking at Dubai‘s Token2049 conference, Ardoino confirmed that Tether has no plans to make its USDt stablecoin—currently the largest by market cap—MiCA-compliant, despite the potential for exchanges to delist it.

“MiCA license is very dangerous when it comes to stablecoins, and I believe that is even more dangerous for the small, medium banking system in Europe,” Ardoino stated. He specifically pointed to MiCA’s requirement that stablecoin issuers maintain 60% of their reserves in insured cash deposits within European banks, warning that such banks could “go belly up” in coming years under these conditions.

The Tether CEO further argued that his decision aims to protect the company’s over 400 million users worldwide who “are not as lucky as Europeans.” He suggested that the European Central Bank’s focus on developing a digital euro may be driven by a desire to “control people and control how they spend their money.”

Regulatory Impact on Exchanges

MiCA regulations, which began implementation in December 2024 after years of planning, require compliance from any crypto company offering services within EU member states—including Tether, despite being headquartered in El salvador. The regulatory impact has already been felt across the crypto exchange landscape, with Kraken delisting five stablecoins including USDt, and crypto.com announcing plans to remove ten stablecoins from its platform.

Tether’s Financial Position

Ardoino’s comments coincided with Tether’s announcement of approximately $120 billion in exposure to US Treasurys as of Q1 2025. The company’s USDt stablecoin maintained a market capitalization of roughly $149 billion as of May 1, according to data cited in the report.

Regarding operations in the United States, Ardoino acknowledged that the company would need “a different type of product” to compete with local stablecoin issuers. He also expressed support for various nations establishing Bitcoin reserves, calling such moves “just inevitable” and adding, “It’s never too late to buy Bitcoin.”

Tether’s stance highlights growing tensions between regulatory compliance and global crypto operations, particularly for stablecoin issuers navigating different regional requirements.

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