The European Union has approved 10 firms to issue stablecoins. This is under its Markets in Crypto-Assets (MiCA) rules. However, Tether, the issuer of USDT, is not included.
The approved firms are:
- Banking Circle
- Circle
- Crypto.com
- Fiat Republic
- Membrane Finance
- Quantoz Payments
- Schuman Financial
- Societe Generale
- StabIR
- Stable Mint
These companies have issued 10 euro-pegged stablecoins and five U.S. dollar-pegged stablecoins. Tether is the largest stablecoin, with a market cap over $141 billion. It wasn’t on the list.
Before the MiCA deadline in December 2024, crypto platforms began to remove USDT and other stablecoins pegged to the U.S. dollar. These coins did not meet the framework’s requirements. Tether criticized the move, calling it rushed and unwarranted.
The EU leads in crypto regulation. However, some say this slows down economic growth and tech progress. Steve Hanke, a professor and market analyst, believes heavy regulation slows EU GDP growth compared to the U.S. The regulatory clarity that once distinguished the EU is now viewed as a barrier to innovation.
Natalia Łątka, Director of Public Policy and Regulatory Affairs at Merkle Science, warns that MiCA rules might hurt the European crypto market. This could discourage foreign firms from operating there. Some local crypto companies might move instead of meeting MiCA’s expensive rules. She said the U.K., which left the EU in 2020, isn’t a good option. This is because it has its own regulatory uncertainty.
ESMA published a timeline for MiCA implementation. The list of approved firms came out on Feb. 20, 2025. The framework asks stablecoin issuers to follow strict rules. This raises concerns about whether these rules will stabilize the market or reduce competition.
Tether’s exclusion has caught attention. It’s unclear if the EU’s tough stance will help the industry in the long run. Supporters say MiCA offers important oversight and protects consumers. Critics, but, view it as a red tape that might drive innovation away from the EU.