Tether Expands Investments Amid Potential Delays Entering Europe Due to MiCA Regulatory Challenges

Key Points

1. Tether has invested in over 120 companies across diverse industries using profits from its $130 billion US Treasury holdings, generating $13.7 billion in 2024.

2. The EU's MiCA regulations impose strict requirements on stablecoin issuers, including reserve backing, transparency, and transaction caps, which Tether has not yet complied with.

3. Tether's CEO Paolo Ardoino stated the company will not enter the European market until MiCA regulations become 'safer for consumers and stablecoin issuers.'

4. Tether has faced criticism for lacking a comprehensive audit since 2017, raising transparency and regulatory concerns.

5. The European Securities and Markets Authority (ESMA) has listed 53 approved crypto firms under MiCA, excluding Tether and Binance, highlighting regulatory hurdles.