As reported by BeInCrypto, Tether's USDT stablecoin has experienced a $2 billion market cap decline in December due to the impending European Union's Markets in Crypto Assets (MiCA) regulation. The MiCA framework, effective from December 30, 2024, requires stablecoin issuers to obtain licenses to operate in the EU. Tether's failure to meet these requirements has led to European exchanges delisting USDT, causing its market cap to fall from $140.5 billion to $138 billion. Despite trading at $0.997, a two-year low, analysts suggest the impact may be limited as 80% of USDT's trading volume is from Asia. Tether is preparing for the regulatory changes by investing in MiCA-compliant stablecoins. Past FUD instances, such as the 2022 FTX bankruptcy, have shown USDT's resilience, with analysts viewing current market fears as potential buying opportunities.
USDT Market Cap Drops $2B Amid MiCA Regulation Concerns
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