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Tether’s market cap experienced its largest decline since FTX’s collapse this week as MiCA regulations prompted delistings across major European exchanges.
What's the Scoop?
- MiCA Impact: European exchanges and
Coinbase delisted USDT, citing compliance concerns with the EU's MiCA regulations, and dropping its market cap over 1% to $137B. - Regional Dominance: Despite the drop,
Tether maintains its lead in stablecoin markets, with 80% of USDT trading volume originating in Asia. - Adaptive Moves: Yet, Tether has invested in MiCA-compliant firms, signaling its intent to adapt to evolving regulatory landscapes.
Bankless Take:
While good at grabbing headlines, Tether’s market cap decline due to MiCA compliance has been expected for a while, with the stablecoin still remaining 3x the size of its closest competitor, USDC.
While these delistings in the euro area certainly create immediate challenges, Tether’s Asia dominance and proactive investments in MiCA-compliant entities suggest resilience against these regulatory pressures, with it already deciphering new methods of maintaining exposure to EU markets.
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