Tether CEO Paolo Ardoino has raised concerns that the EU's MiCA regulation could threaten stablecoins and the banking system. 

👀 MiCA requires that at least 60% of stablecoin reserves be held in EU bank accounts. Ardoino noted that banks operate on a fractional reserve system, meaning only a fraction of deposits are available for withdrawal at any time. 💵

He also pointed out that cash deposits in the EU are insured up to just $100,000.

📉 🤷Ardoino highlighted the 2023 collapse of Silicon Valley Bank, which was a reserve bank for USDC and led to USDC losing its dollar peg, as a key example of the potential risks.