As the European Union’s (EU) crypto regulations near their full implementation, the future of Tether’s USDT (USDT-USD) stablecoin remains uncertain. The EU’s Markets in Crypto-Assets Regulation (MiCA) takes full effect on Dec. 30, 2024, yet EU regulators have not yet confirmed whether USDT complies with the new rules. According to Cointelegraph, while exchanges like Coinbase (COIN) delisted USDT in mid-December for compliance reasons, others such as Binance and Crypto.com continue to trade it.
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Exchanges Keep Trading USDT amid Uncertainty
Despite speculation that USDT may be delisted across the EU, Cointelegraph reports that many exchanges are opting to “wait and see” what European regulators decide. Juan Ignacio Ibañez, a member of the MiCA Crypto Alliance, noted that Coinbase’s early delisting might be a precaution to avoid regulatory risks rather than a sign of imminent action from other exchanges.
MiCA’s Transitional Phase Extends Uncertainty
While MiCA officially comes into effect at the end of the year, there’s also an 18-month transitional phase. This extended timeline could allow exchanges to continue trading under existing laws until July 2026, as long as they meet certain requirements. This “grandfathering” clause may provide some breathing room, but the final fate of USDT in Europe hangs in the balance.
