Paolo Ardoino, CEO of Tether, has defended the company’s decision not to register under the European Union’s Markets in Crypto-Assets (MiCA) framework for its USDt stablecoin. In an interview at Token2049 conference in Dubai, Ardoino stated that MiCA’s regulations pose a significant risk to stablecoins like USDt and could even jeopardize the financial stability of small banks across Europe. He argues that the stringent requirements from MiCA, including reserving 60% of USDt reserves in insured cash deposits with European banks, threaten to destabilize the banking system in the region. Ardoino believes that these regulations are excessive for stablecoins and may inadvertently cripple smaller European banks. He added: “I decided not to apply to the MiCA license because I need to protect the 400 million+ users who we have around the world. They are not as fortunate as Europeans. I love Europe, but I think that unfortunately the European Central Bank is more focused on pushing the digital euro as a means to control people and how they spend their money.” Other exchanges such as Kraken and Crypto.com have responded by delisting certain stablecoins in compliance with MiCA requirements. Meanwhile, Tether plans to operate in the US under different conditions, given existing competition from local stablecoin issuers. Ardoino believes that the US’s Bitcoin (BTC) reserve efforts are inevitable, but will be driven more by education than policy. He also announced exposure of $120 billion in US Treasury bonds as of the first quarter of 2025 and a USDt market capitalization of roughly $149 billion on May 1st.