European exchanges will delist USDT from Tether. Possible consequences

Cryptocurrency exchanges in Europe will delist USDT from Tether
European crypto exchanges risk facing a negative impact due to the delisting of the largest trading volume stablecoin

The new rules of the European Union on crypto assets MiCA imply that cryptocurrency exchanges in the EU must delist stablecoins that have not been approved by regulators by December 30, 2024. Among such cryptocurrencies could be USDT from Tether - the company has not obtained local permission.

MiCA requires all stablecoins listed on cryptocurrency exchanges to be issued by issuers who have obtained a special license. Circle, the closest competitor of Tether, received such permission in July.

The total capitalization of stablecoins is about $200 billion, as of December 20. Of these, $140 billion is accounted for by USDT and $42 billion by USDC from Circle.

Tether token is significantly ahead of all cryptocurrencies in terms of trading volume. Out of the total market trading volume of $385 billion in the last day, $218 billion was accounted for by USDT. For comparison: $110 billion for Bitcoin, and $15 billion for USDC.

In November, Tether decided to abandon its EURT stablecoin, pegged to the euro, and invest in the European company StablR, which issues such assets. StablR is the issuer of EURR and USDR, and this summer it obtained the necessary license to operate in Europe in Malta.

Shortly after, Tether announced that it would release stablecoins EURQ and USDQ in collaboration with Quantoz Payments, in accordance with the MiCA standard. The tokens will be launched on Hadron, Tether's platform for launching stablecoins and other tokenized assets.

At the same time, industry participants believe that delisting USDT exposes Europe to the risk of missing out on the cryptocurrency boom associated with the election of US President Donald Trump, writes Bloomberg. Cryptocurrency company executives warn that these MiCA rules may lead to liquidity outflows from markets without achieving EU goals, reducing the region's attractiveness to crypto traders at a critical moment.

According to industry participants, the delisting of Tether 'restricts' the Europeans themselves, because USDT is the most liquid stablecoin today, as stated in the message. Experts note that a large part of crypto assets is traded paired with USDT, so investors who have to exit the USDT pair to buy the same asset for trading paired with another stablecoin will incur losses.

There is a risk that Europe will become a crypto backwater, according to Bloomberg. This may happen against the backdrop of rapidly increasing competitive pressure from the United States.

The Securities and Exchange Commission's (SEC) long-standing efforts to combat cryptocurrency companies are giving way to the pro-cryptocurrency policy of the new government. Among the new high-ranking officials is Howard Lutnick, CEO of Cantor Fitzgerald, a company that holds $85 billion in Tether treasury bills. Lutnick was chosen by Trump to head the U.S. Department of Commerce.