- Tether CEO Paolo Ardoino has criticized the EU’s MiCA regulation as harmful to the stablecoin sector
- Ardoino defended Tether’s decision not to register USDT under the current MiCA framework
- Ardoino has argued that the rules could benefit banks at the expense of stablecoin accessibility and resilience
Tether CEO Paolo Ardoino has raised alarms over the European Union’s upcoming Markets in Crypto-Assets (MiCA) regulation, calling it “very dangerous” for stablecoins. In an interview at Paris Blockchain Week, Ardoino warned that MiCA could have damaging effects on stablecoins such as USDT, stating that Tether would not register USDT under MiCA in its current form. He also argued that the rules would restrict financial innovation and hand too much control to traditional banks in the form of the Digital Euro.
Ardoino Opposes MiCA Registration for USDT
Speaking during a May 3 interview with Cointelegraph at the Paris Blockchain Week, Ardoino made clear that Tether sees serious problems with the MiCA framework, particularly in how it treats reserve management and custodianship:
We believe MiCA in its current form is very dangerous. It is creating a situation where access to stablecoins could become severely limited, especially for smaller institutions or users outside the traditional financial system.
Ardoino’s central concern is that MiCA mandates stablecoin issuers to hold reserves only with highly rated institutions, effectively forcing dependence on major banks. He warned this could create a “single point of failure” and concentrate too much financial power in a few hands, arguing, “That’s not decentralization; it’s handing the keys back to the same entities that crypto was designed to provide an alternative to.”
Implications for Stablecoin Regulation
Tether’s refusal to register USDT under MiCA could create ripple effects across the European crypto landscape. Ardoino confirmed that while the euro-pegged EURT might seek compliance, USDT would remain outside the scope of MiCA until substantial changes are made. “We are supportive of sensible regulation,” he said, “but we won’t compromise on user access or operational resilience.”
Ardoino’s remarks underscore growing tension between policymakers and crypto firms over how digital currencies should be regulated in the EU, which is no small matter given USDT’s huge importance to the crypto space.
