Tassilo.base.eth
@tassilo
Stablecoins are one of the biggest use cases in crypto. Also they are the easiest to understand for industry outsiders. Yet most people don't get how stablecoins differ and why regulation can be positive. 📋 Coinbase to Delist USDT in the EU Due to MiCA Regulations As reported, Coinbase is adjusting its stablecoin offerings in the EU to comply with the MiCA regulations. MiCA requires all stablecoins to hold an e-money license within the EU, which is expected to affect stablecoins like USDT, as they may struggle to meet these requirements. Coinbase has committed to delisting non-compliant stablecoins by the end of 2024 to ensure regulatory compliance.
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Tassilo.base.eth
@tassilo
📉 Tether’s Challenges with MiCA Tether (USDT), the dominant stablecoin, may face challenges under MiCA due to its reserve composition. While 77.88% of its reserves are invested in highly liquid U.S. Treasury Bills and repurchase agreements, Tether also holds less liquid assets. These include precious metals (3.05%), Bitcoin (3.83%), loans (5.23%), and other long-term investments, which could take longer to liquidate. A shift in these reserves towards "money in the bank" - as requested by MiCA - could significantly diminish the company’s returns. However, MiCA’s requirements may push Tether to adjust its reserve structure and auditing processes.
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Tassilo.base.eth
@tassilo
🔥 USDC as a Leading MiCA-Compliant Option USDC has taken steps to comply with MiCA regulations, positioning itself as the leading regulated stablecoin in the EU. USDC is backed by bank reserves, aligning with MiCA’s transparency and liquidity requirements. Coinbase plans to offer users in the EU options to convert their non-compliant stablecoins to USDC. If Tether does not comply with MiCA regulations, USDC will inherently gain market share against the USDT behemoth.
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Tassilo.base.eth
@tassilo
🔮 Future Stablecoin Market Implications Many platforms, including OKX and Bitstamp, have already begun limiting access to non-compliant stablecoins, indicating a shift toward regulatory-approved options. Additionally, euro-backed stablecoins are emerging, leveraging MiCA’s framework. MiCA seems to be fostering more regulated stablecoin competition, while putting emphasis on user protection and financial transparency.
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