Tether (USDT) CEO Paolo Ardoino: MiCA regulation is “dangerous” for stablecoins

Paolo Ardoino, the CEO of stablecoin issuer Tether, has defended the company's decision not to seek registration under the European Union's Markets in Crypto-Assets (MiCA) framework, arguing that the regulations were risky for stablecoins.

Speaking at the Token2049 conference in Dubai on Wednesday, Ardoino said that Tether had no plans to apply for its U.S. dollar-pegged stablecoin USDt — the largest by market capitalization — to be compliant in European countries, potentially forcing exchanges to delist the stablecoin.

He added that while crypto firms had to follow rules, there was a "fear of compliance" among companies in the E.U.

"If you look at the MiCA license, it's very dangerous when it comes to stablecoins, and I believe that is even more dangerous for the small, medium banking system in Europe," said the Tether CEO, adding that banks in the region could "go belly up" in the next few years thanks to MiCA's requirements, such as keeping 60% of stablecoins reserves in insured cash deposits in European banks.

After years of planning and research, E.U. officials began to implement requirements under MiCA in December 2024. Tether, which is regulated and headquartered in El Salvador, is required to comply with MiCA regulatory requirements if offering products or services in E.U. member states.

Since the regulations went into effect, many crypto exchanges acted to ensure that their platforms listed MiCA-compliant tokens. For instance, Kraken delisted five stablecoins, including USDt, and Crypto.com announced plans to delist 10 stablecoins as of January.

On nations establishing crypto reserves

Speaking on its intentions for operating in the United States, Ardoino said that the country "would require a different type of product," given the competition with local stablecoin issuers.

He added that the U.S.'s and other countries' efforts to establish a Bitcoin (BTC) stockpile were "just inevitable."

"In the medium to long term, the more Bitcoin education, the more companies will set the example ... then everyone else will follow," said the Tether CEO. "It's never too late to buy Bitcoin."

Ardoino's statements came the same day that Tether announced roughly $120 billion in exposure to U.S. Treasurys as of the first quarter of 2025. As of May 1, USDt had a market capitalization of roughly $149 billion.