In the wake of new EU regulations under the Markets in Crypto-Assets (MiCA) framework, Tether, the issuer of the USDT stablecoin, faces delisting on major European exchange platforms. This has already led to Coinbase removing USDT last December, with Crypto.Com following suit amid regulatory pressures. Tether has expressed disapproval of these developments, noting the lack of clear justification for such swift actions. A spokesperson stated, "The rapid decisions, lacking detailed rationale, are disappointing."

Tether warns that MiCA-driven changes could pose significant risks to investors in the EU. A representative noted, “The regulations will impact numerous tokens, not just USDT, heightening investor risks.” Meanwhile, ongoing discussions highlight key differences in stablecoin applications between the US and Europe.

Industry experts remain divided over MiCA's implications. Critics, including Tether CEO Paolo Ardoino, argue that delisting USDT may reduce liquidity and risk market fragmentation, complicating cross-border transactions. On the contrary, some assert that MiCA enhances user safety and encourages competition, particularly through its passporting feature that facilitates services across all EU member states.

Marina Markezic, of the European Crypto Initiative, lauds MiCA's regulatory framework, pointing to opportunities for crypto businesses to operate more smoothly within Europe. She sees it as crucial for reducing entry barriers and fostering innovation, akin to Switzerland's balanced legal approach.

Conversely, Andreas Garner of Swiss law firm MME raises concerns over MiCA's high compliance burdens, doubting its potential to match Switzerland's thriving crypto sector. He states, “With stringent compliance requirements, we are skeptical that MiCA will enable EU companies to efficiently reach global markets.”

The ongoing debate underlines the mixed reactions to EU regulations, highlighting potential challenges and opportunities for the cryptocurrency ecosystem within the region.