Paolo Ardoino, CEO of Tether, criticized the European Union’s strategy on digital currencies and the MiCA framework. His stance exposes difficulties for the digital euro project and highlights regulatory tensions affecting stablecoin issuers. Ardoino warns that reserve requirements could discourage USDT operations in Europe and accelerate the company’s strategic pivots.
Ardoino’s Criticism of MiCA and the Digital Euro
Ardoino focuses his criticism on MiCA and its reserve requirements, highlighting the obligation to keep a large portion of reserves in cash deposits secured in European banks. According to his analysis, such a measure could shift risk to the banking system and to smaller banks. In this context, he stated:
“I think that, unfortunately, the European Central Bank is more interested in pushing the digital euro as a way to control people and control how they spend their money.”
Tether’s Response: Regulatory and Technical Strategy
Tether has decided not to seek MiCA compliance for USDT, an option that could lead to its delisting from European exchanges. At the same time, the company announced an alternative route: launching USA₮ as a regulated stablecoin in the U.S., suggesting a tactical shift toward jurisdictions perceived as more favorable.
Meanwhile, the company plans to expand the technical interoperability of USDT through integration with the RGB protocol of Bitcoin to operate natively on Bitcoin and Lightning, reinforcing its infrastructure in technical layers outside the European framework.
Tether is also diversifying its reserves outside of dollar-denominated assets. In June 2025, Tether Investments acquired a stake in Elemental Altus Royalties Corp. for $105 million, and also holds gold reserves worth $8 billion in a vault in Switzerland as part of its hedging strategy.
The clash between European regulatory ambitions and the market’s response could have practical effects on liquidity, access, and listings in Europe, conditioning the role of USDT in the region.
Some Anticipated Consequences
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Possible delisting of USDT from European exchanges if MiCA compliance is not achieved.
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Launch of USA₮ as a regulated stablecoin in the U.S., reinforcing jurisdictional fragmentation.
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Integration of USDT with RGB and Lightning to reduce dependency on European infrastructures.
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Exposure to hard assets: stake in Elemental Altus ($105 million, June 2025) and gold reserves ($8 billion in Switzerland).
The controversy highlights a persistent tension between the implementation of MiCA and the progress of the digital euro, with stablecoin issuers exploring different regulatory and technical routes. The next milestone will be the practical execution of MiCA and the decisions of European exchanges on the listing of USDT, determining the extent of the shift in activity towards alternatives like USA₮.
