The European central banks, grouped within the European System of Central Banks (ESCB), have challenged a key clause of the MiCA regulation requiring stablecoin issuers to hold 60 % of their reserves in the form of bank deposits. Tether’s CEO, Paolo Ardoino, reaffirmed his rejection of the European regulatory framework, describing MiCA as “very dangerous for stablecoins” and accusing the European Central Bank of favoring the digital euro as a control tool. The absence of Tether’s USDT from the European crypto market, effective since the implementation of MiCA in January 2025, is explained by this requirement deemed unacceptable. The ESCB has proposed replacing the 60 % bank deposit rule with an obligation to hold assets maturing within one to five business days.
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