EU's MiCA regulations, which took effect on December 30, 2024, are expected to significantly benefit euro-denominated stablecoins, according to JPMorgan in a recently released research report. The regulations stipulate that only compliant stablecoins can be used as trading pairs on regulated markets, compelling EU exchanges to modify their offerings. As a result, compliant stablecoins like Circle's EURC are gaining traction, while non-compliant options, such as Tether's EURT, are facing difficulties. Tether has chosen to discontinue its EURT offering due to the new compliance requirements, which demand that stablecoin issuers maintain substantial reserves in European banks and obtain appropriate licenses to operate. Despite these challenges, Tether remains a predominant player in the global stablecoin market, particularly in Asia, where regulatory pressures are lighter. JPMorgan also emphasized Tether's investments in MiCA-compliant stablecoin issuers as evidence of its intent to retain relevance in the EU market.

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