
Paolo Ardoino, Chief Executive Officer of Tether, the issuer behind the world’s largest stablecoin by market capitalization, has voiced serious concerns over the European Union’s Markets in Crypto-Assets (MiCA) framework. Speaking at the Token2049 conference in Dubai, Ardoino defended the company’s decision to forgo registration under the new EU regulations, labeling MiCA’s provisions as potentially destabilizing for both the stablecoin sector and the region’s banking infrastructure.
Ardoino emphasized that Tether has no intention of applying for MiCA compliance for its flagship US dollar-pegged asset, USDT. Despite mounting regulatory pressure, he argued that the framework imposes disproportionate requirements that could severely limit operational flexibility and pose existential risks to small and mid-sized European banks.
“The MiCA license is very dangerous when it comes to stablecoins,” Ardoino stated. “It is even more dangerous for the small and medium banking system in Europe. These banks could go belly up in the next few years under MiCA’s stipulations.”
Under MiCA, stablecoin issuers are required to maintain 60% of reserves in insured cash deposits within European banks—a provision Ardoino considers financially unviable. He suggested that such regulatory overreach is driven more by political motives than financial prudence, citing the European Central Bank’s push for a digital euro as an attempt to exert greater control over citizens’ spending.
“I decided not to apply for a MiCA license to protect our over 400 million users worldwide,” Ardoino said. “They are not as privileged as Europeans. I love Europe, but the ECB seems more focused on promoting the digital euro as a control mechanism.”
Since MiCA began rolling out in December 2024, major exchanges have moved swiftly to comply. Platforms such as Kraken have delisted multiple stablecoins, including USDT, while Crypto.com plans to remove ten tokens as of January.
Tether, headquartered and regulated in El Salvador, is currently not authorized to offer its services within the EU under MiCA, though its tokens remain in widespread use globally.
Global Strategy and Bitcoin Reserve Commentary
Turning to the U.S. market, Ardoino noted that different regulatory dynamics necessitate unique product offerings, particularly due to competition with domestic stablecoin providers. He also commented on the increasing interest among sovereign states in building national reserves of Bitcoin.
“Bitcoin reserve accumulation is inevitable,” Ardoino remarked. “As education spreads and institutional adoption rises, governments will follow the lead of early adopters. It’s never too late to buy Bitcoin.”
On the same day, Tether disclosed that it holds approximately $120 billion in U.S. Treasurys, signaling a continued strategy of deepening ties with traditional financial markets. As of May 1, USDT’s market capitalization stood at approximately $149 billion.