Debunking MiCA FUD: Why USDT Remains a Trusted Stablecoin
MiCA marks a significant step in EU crypto regulation, but it has also reignited a longstanding pattern of misinformation targeting Tether’s USDT. Since 2017, critics like the pseudonymous "Bitfinexed" have perpetuated waves of FUD, predicting USDT's downfall and casting doubt on Tether's operations. Yet, despite these persistent attacks, they just emerge stronger every time, solidifying their position as the world's most trusted and widely used stablecoin. The latest wave of FUD surrounding MiCA is no different; driven by vested interests of competitor goons and misinterpretations of the regulatory framework. Let’s separate the facts from the fiction and understand why USDT continues to thrive.
Understanding MiCA’s Scope: What Does It Regulate?
MiCA regulates stablecoin issuers who either:
Offer Asset-Referenced Tokens (ARTs) or E-Money Tokens (EMTs) (collectively termed "stablecoins") to the public within the European Union
Seek admission of their stablecoins to trading platforms in the EU
It’s important to note: MiCA does NOT impose global jurisdiction over stablecoin issuers. This means stablecoins issued outside the EU, and not actively marketed or solicited for trading in the EU, fall outside its regulatory scope. Suggesting otherwise is a misunderstanding of MiCA’s design or, worse, deliberate fearmongering. Also known as “being stupid”.
ARTs, EMTs, and Their Implications
Stablecoins pegged to fiat currencies or other assets (ARTs or EMTs) are a focus of MiCA. However, not all stablecoin issuers aim to offer these tokens to the EU public or seek listing on EU trading platforms. Many issuers choose to operate outside this framework, and they’re perfectly compliant in doing so.
The misconception here lies in equating a stablecoin’s global presence with a regulatory obligation under MiCA. Only a small subset of ARTs and EMTs are directly impacted.
CASPs and Trading: Dispelling the Myths
Crypto Asset Service Providers (CASPs), such as exchanges, are not prohibited from listing stablecoins simply because the issuers are not authorized under MiCA. Here’s why:
Admission to trading ≠ Offering to the public
MiCA’s Recital 41 makes it clear that listing a stablecoin on an exchange does not constitute an offer to the public. Hence exchanges are not required to become licensed Electronic Money Institutions (EMIs) or banks for listing EMTs
Onboarding stablecoins
CASPs can list and offer services related to stablecoins as long as the issuers are not actively soliciting sales in the EU. This ensures liquidity in the European crypto market while keeping issuers outside MiCA’s jurisdiction if they haven’t entered the EU market intentionally
USDT and MiCA Compliance: The Facts
A lot of friends and peers have reached out about USDT and the scrutiny amid the MiCA roll-out. Basically, it’s an indicator of how well-versed they are on the topic and when they entered the market. Then again, there are critics who have insinuated non-compliance, but here’s the truth:
USDT is not actively marketed to the EU public by its issuer
MiCA explicitly allows for the listing of stablecoins like USDt by CASPs, provided the issuer is not breaching MiCA regulations
USDT, AKA the world’s largest and most widely used stablecoin, still remains a reliable and compliant stablecoin. Attempts to spread FUD around its status are unfounded and merely driven by competitors who pay shill armies, seeking to capitalize on misinformation.
It Gets Worse (before it gets better)
MiCA’s misinterpretation hurts everyone. Adopting a rigid and incorrect interpretation of MiCA severely impacts the EU’s crypto ecosystem. Excluding stablecoins like USDT from European exchanges would damage liquidity, hurt market participants, and set back the growth of the region's crypto markets.
Stablecoins like USDT play a crucial role in the broader digital asset economy, providing stability, liquidity, and a bridge to fiat systems. Undermining their value based on false narratives only serves to weaken the community.
Final Thoughts: Don’t Believe the FUD
According to some (all Circle employees), MiCA represents a progressive step in regulating crypto markets, but it’s vital to distinguish facts from fiction. USDT is safe, compliant, and essential to the global and EU crypto ecosystem.
The FUD around MiCA and USDT isn’t about regulation; it’s about control and competition. Don’t let the noise distract you from the truth. You can check the data if you like. USDT will continue to thrive, ensuring liquidity and stability in markets worldwide.
I am excited about the next 7 years of FUD to be honest. It will be an increasing indicator of how strong Tether truly is.
I love stablecoins, Tether in particular, and I will be writing about the ongoing and ever-increasing future stablecoin war. Stay tuned for insights, drama, and analysis as it all unfolds.
P.S. In case you didn’t realize, I am not Patrick Hansen.