MiCA pushes USDT out, leaves USDC in the spotlight

Circle says USDC is the only one of the world’s ten largest stablecoins that currently complies with the European Union’s Markets in Crypto-Assets (MiCA) regulation. If accurate, the claim means the EU’s roughly 450 million residents no longer have regulated access to most major dollar-backed stablecoins, including Tether’s USDT.

The declaration comes as Europe fully implements its landmark crypto legislation, which is changing the landscape of which stablecoins are available for trading in the region and prompting discussions on whether MiCA has indeed gotten the balance between innovation and financial stability right.

Only two Circle tokens made the compliant list

As stated on Circle’s European regulatory page, USDC is the sole top-10 stablecoin by market cap that has been given approval under MiCA. EURC, which is backed by the euro, has also been accepted. The company claims that both tokens can be completely redeemed in fiat currency, with reserves kept in compliance with regulation and made available to the general public. Circle published its reserve report on August 3.

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