The European Union's Markets in Crypto-Assets Regulation (MiCA) has officially limited access to several major stablecoins for EU-based users, according to Circle’s head of EU policy, Patrick Hansen. Only a handful of stablecoins—USDG, USDC, and EURC—currently meet MiCA’s stringent compliance requirements, leaving Tether’s USDT either unavailable or accessible only without regulatory protections.
MiCA, fully implemented in 2024, imposes strict reserve, transparency, and operational requirements. Issuers must obtain authorization as an electronic money institution or credit institution. Tether’s USDT, the largest stablecoin by market cap, has not secured the necessary approvals, forcing EU-based exchanges to delist or restrict trading pairs. Circle asserts that USDC is the only top-10 stablecoin by market cap approved under MiCA, with EURC also compliant. The regulation’s 60% reserve rule mandates significant stablecoins hold at least 60% of reserves in EU bank deposits, a hurdle Tether refused to meet, instead discontinuing its EURT stablecoin and exiting the EU market.
Exchanges like Binance, Coinbase, Kraken, and OKX removed USDT pairs for European clients. Despite fears, market volumes barely moved, with USDC’s share in the USDT-to-USDC pair rising only slightly. However, the shift has increased risks of impersonation scams. Meanwhile, MiCA-compliant euro stablecoins reached a record near $900 million, with Circle’s EURC leading after EURT’s retirement. By late July 2026, 19 e-money token issuers were authorized across 11 EU states, and a consortium of nine European banks plans a MiCA-compliant euro stablecoin. The regulation has reshaped the stablecoin landscape, favoring compliant issuers like Circle while forcing users to adapt to fewer options.
