It’s May 4, 2025, and Tether CEO Paolo Ardoino isn’t holding back. He’s taken a strong stand against the European Union’s Markets in Crypto-Assets (MiCA) regulations, calling out a rule that could shake up the stablecoin world—and not in a good way. His main gripe? The requirement that stablecoin issuers, like Tether with its massive $120 billion USDT, stash at least 60% of their reserves in European bank accounts. To Ardoino, this is a recipe for trouble.
He’s worried that parking all that money in banks—uninsured amounts well above the EU’s €100,000 deposit limit—could spell disaster if a bank goes under. He points to the 2023 Silicon Valley Bank fiasco, where Circle’s $3.3 billion in USDC reserves got stuck, as a wake-up call. “If a bank crashes, stablecoin companies could go down too—not because we messed up, but because the banking system is shaky,” Ardoino said, sounding the alarm on how this could mess with liquidity in a fractional reserve setup.
He’s also skeptical of the European Central Bank’s digital euro push, hinting it’s more about control than freedom. Instead of bending to MiCA, Tether’s skipping Europe, eyeing opportunities in places like Argentina and exploring U.S. options. Some see this as Tether waving goodbye to a market bogged down by red tape, while others wonder if it’s dodging tougher oversight.
The crypto community is split. Circle’s playing ball with MiCA and its EURC stablecoin, but Ardoino stands firm, touting Tether’s U.S. Treasury-heavy reserves as safer than bank accounts. Critics, though, still raise eyebrows about Tether’s past reserve questions. Meanwhile, European banks like Société Générale are jumping in with their own euro-stablecoins, ready to fill the void.
This clash highlights a bigger struggle: MiCA wants to protect people and steady the crypto ride, but its bank focus might backfire. As Tether charts its own path, the EU’s got a tough call—strike a balance between rules and innovation, or watch a key player walk away. It’s a turning point for Europe’s crypto future.