Tether CEO Paolo Ardoino has rejected calls for the company to register its USDT stablecoin under the European Union’s new Markets in Crypto-Assets (MiCA) framework, calling the regulation a threat to both stablecoins and the European banking system. Speaking at Token2049 in Dubai, Ardoino said Tether will not seek MiCA compliance, warning that the rules could lead to financial instability and force exchanges to delist USDT in Europe.

Ardoino specifically criticized MiCA’s requirement for stablecoin issuers to hold 60% of their reserves in insured deposits at European banks, suggesting that such a mandate could cause smaller banks to collapse. “I need to protect the 400 million+ users we serve globally,” he said. “They’re not as privileged as Europeans. The ECB seems more focused on launching a digital euro to control spending rather than fostering innovation.”

MiCA came into effect in December 2024, prompting exchanges like Kraken and Crypto.com to delist several stablecoins, including USDT, to stay compliant. While Tether is headquartered in El Salvador, it must follow EU rules if it wishes to operate in member states.

Ardoino also touched on Tether’s plans in the U.S., saying the company would need a different approach due to competition with domestic stablecoins. He believes countries accumulating Bitcoin reserves is inevitable, calling it a long-term trend driven by education and corporate adoption.

On the same day, Tether revealed it held approximately $120 billion in U.S. Treasurys in Q1 2025. USDT remains the largest stablecoin globally, with a market cap near $149 billion as of May 1.