The consultation on MiCA proposes recognizing foreign frameworks such as the U.S. GENIUS. Regulator
- The EU is consulting on its MiCA regulation, proposing an equivalence regime that could allow foreign stablecoin issuers like Tether to operate in Europe without local subsidiaries.
- A key hurdle remains: Tether's reserve structure, heavily weighted in U.S. Treasury bonds, conflicts with MiCA's requirement for significant European bank deposits, a rule Tether finds dangerous.
- The decision on equivalence, due by August 31, 2026, will determine if Europe integrates with global stablecoin liquidity or remains isolated, with Tether's potential return hinging on regulatory flexibility regarding reserves.
Topics: Jurisdictions, Legal regulatory, Infrastructure providers, Regulatory sandboxes pilots, Securities law classification, Major financial incumbents
Tags: #tether #usdt #mica #europe #equivalence #stablecoin #reserves #usat #ustreasurybonds #regulatoryframework