As of December 27, 2024, the European Union's Markets in Crypto-Assets Regulation (MiCA) is set to take full effect in just three days, raising uncertainties around Tether's USDt (USDT) stablecoin. Following Coinbase's delisting of USDT on December 15, many exchanges in the EU continue trading the stablecoin, awaiting clarity on its compliance with MiCA.
Juan Ignacio Ibañez from the MiCA Crypto Alliance stated that while no regulators have declared USDT non-compliant, its future remains uncertain. He indicated that delistings could occur on or after the December 30 deadline, but the timing may vary among exchanges.
Conflicting reports suggest that exchanges must delist USDT by the MiCA deadline, yet European regulators have not provided explicit guidance. The European Securities and Markets Authority (ESMA) has refrained from confirming USDT's status under MiCA, stating they are working with market participants to address related issues.
MiCA's transitional phase will last until July 2026, allowing certain crypto service providers to continue operations under existing national laws. Ten EU member states, including France and Estonia, will have an 18-month grandfathering period, while others have shorter transition timelines.