Tether CEO Says Company Refused to Apply for EU MiCA License Over Stablecoin Reserve Rule

Tether CEO Paolo Ardoino said the company refused to apply for an EU MiCA license because of the rule requiring major stablecoin issuers to hold at least 60% of their reserves in commercial bank deposits. The remarks follow a proposal by the European Central Bank and other EU central banks to remove the requirement, citing the risk that volatile stablecoin deposits could expose banks to sudden withdrawals. The central banks instead recommend liquidity requirements based on assets maturing within one to five working days. The proposed change has not yet been adopted. — link