Tether abandoned the European market rather than comply with MiCA regulations. Circle, through its head of EU policy Patrick Hansen, proposes an equivalence mechanism that would allow the EU to accept foreign issuers’ home rules for stablecoins. This solution would spare companies from creating a licensed entity in the EU, which currently affects about 99% of stablecoins. Tether, the world’s largest stablecoin with a market capitalization of approximately $184 billion, could thus return to the European market without developing a separate EU coin. The EU’s MiCA review opened in May 2026 represents the best opportunity to advance this change.
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