Tether CEO Paolo Ardoino announced the company will not apply for a MiCA license in the European Union, citing incompatibility with the regulation's requirement that major stablecoin issuers hold at least 60% of reserves in commercial bank deposits. Ardoino said this mandate conflicts with Tether's current reserve management practices, which include a diversified mix of commercial paper, secured loans, and other liquid assets beyond bank deposits. The decision affects USDT, the world's largest stablecoin by market capitalization and trading volume.
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