- Tether faces a transition period of 6 to 18 months to comply with EU MiCA regulations, ensuring reserves and liquidity requirements.
- Michael Hilliard guides Tether through MiCA challenges as exchanges like Coinbase delist USDT, pending regulatory clarity.
Stuart Hoegner, long-time general counsel for Tether and Bitfinex, has retired after holding the position since 2014. His position is being taken over by Michael Hilliard, who must now guide Tether through the complexities of the European Union’s recently adopted crypto-asset markets. (MiCA) rules.
Starting on December 30, 2024, this legal structure strictly enforces reserve support and sufficient liquidity to guarantee financial stability and consumer protection, therefore imposing strong obligations on stablecoin issuers.
TETHER’S LEGAL CHIEF CALLS FOR BACKUP JUST AS CRYPTO RULES BECOME REAL
Stuart Hoegner, Tether’s legal assistant, has hung his briefcase on a peg, leaving Michael Hilliard to navigate the hot mess that is MiCA regulations in the EU.
The new rules are aimed at ensuring that stablecoins have… pic.twitter.com/adnmJwyqdN
— Roundtable by Mario Nawfal (@RoundtableSpace) January 3, 2025
Tether’s compliance with MiCA faces delays and delisting
For Tether’s activities within the EU, the launch of MiCA is not without results. Although USDT, the company’s flagship stablecoin, has long been a leader in the global stablecoin industry, its adherence to MiCA rules is currently under close scrutiny.
Tether still needs to have the necessary e-money license it requires MiCA. This delay prompted a number of European exchanges, including well-known sites like Coinbase, to temporarily delist USDT to await more clarity on the regulatory space.
CNF previously reported that Tether expects a transition period of 6 to 18 months to meet MiCA’s needs. But the lack of immediate compliance has given people room to speculate about Tether’s future in the European market.
While some exchanges are waiting for developments before making firm decisions, others have taken a cautious approach and decided to delist USDT.
The broader difficulty of maintaining a competitive advantage in a more regulated crypto environment adds to the complexity of the matter. MiCA aims to set the benchmark for crypto regulations, and neglecting to adhere to these standards could jeopardize Tether’s reputation in EU.
Overcoming those hurdles is no small task for Michael Hilliard, especially as the rules require operational improvements as well as preserving investor confidence in a market already rife with volatility and mistrust.
