The implementation of the European Union's Markets in Crypto-Assets (MiCA) regulations has shaken the dominance of Tether's USDT stablecoin in the EU. The regulations require stablecoin issuers like Tether to hold 60% of their reserves in EU banks, leading to redemptions and regulatory challenges for Tether. Competitors like Circle's USDC and Ripple's RLUSD are thriving under the new regulatory framework and gaining market share. Exchanges have already started delisting USDT in Europe, while USDC has positioned itself as the stablecoin of choice for EU-compliant exchanges. Ripple's RLUSD, launched in December, is also gaining traction with its regulatory-compliant features and partnership with Chainlink for integration into the decentralized finance space. USDT's struggles with transparency and allegations of under-collateralization have fueled mistrust, while USDC and RLUSD offer greater transparency and compliance. As MiCA sets a regulatory benchmark in the EU, the stablecoin market may undergo a power transition in 2025, with competitors gaining momentum.



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