The European Union has approved 10 firms to issue stablecoins under its Markets in Crypto-Assets (MiCA) regulatory framework, excluding Tether, the issuer of USDT.
The European Union has approved 10 firms to issue stablecoins under its Markets in Crypto-Assets (MiCA) regulatory framework, excluding Tether, the issuer of USDT. The approved firms include Banking Circle, Circle, Crypto.com, Fiat Republic, Membrane Finance, Quantoz Payments, Schuman Financial, Societe Generale, StabIR, and Stable Mint. These companies have issued 10 euro-pegged stablecoins and five U.S. dollar-pegged stablecoins. Tether, the world’s largest stablecoin by market capitalization at over $141 billion, was not on the list.
Before the MiCA deadline in December 2024, crypto platforms began delisting USDT and other U.S.-pegged stablecoins that did not meet the framework’s requirements. Tether criticized the move, calling it rushed and unwarranted.
The EU has been at the forefront of crypto regulation, but some argue it has come at the cost of economic growth and technological advancement. Professor and market analyst Steve Hanke has pointed to excessive regulation as a major factor behind the EU's slower GDP growth compared to that of the United States. The regulatory clarity that once set the EU apart is now seen as a potential obstacle to innovation.
Natalia Łątka, Director of Public Policy and Regulatory Affairs at Merkle Science, has warned that the MiCA regulations could isolate the European crypto market by discouraging foreign firms from operating in the region. She also noted that some local crypto companies may choose to relocate rather than comply with MiCA’s costly requirements. However, she suggested that the U.K., which left the EU in 2020, is not an attractive alternative due to its own regulatory uncertainty.
The European Securities and Markets Authority (ESMA) published a timeline for MiCA implementation, and the list of approved firms was released on Feb. 20, 2025. The framework requires stablecoin issuers to meet strict regulatory conditions, raising concerns about whether these measures will stabilize the market or limit competition.
While Tether’s exclusion has drawn attention, it remains unclear whether the EU’s strict approach will benefit the industry in the long run. Supporters argue that MiCA provides much-needed oversight and consumer protection, while critics see it as a bureaucratic barrier that could push innovation outside the EU.
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