EU Released Their Pick of Ten Firms That Can Issue Stablecoins Under the Union's MiCA Regulatory Framework

This shows that the union is still leading the world in terms of regulation but at the cost of tech innovation, competitiveness, and economic growth.

The European Union has recently unveiled its selection of ten companies that will be permitted to issue stablecoins within the union under the Markets in Crypto-Assets (MiCA) regulatory framework. This move showcases the union's continued leadership in the realm of crypto regulation. However, some experts argue that this focus on regulation comes at the expense of technological innovation, competitiveness, and economic growth.

According to Patrick Hansen, Senior Director of EU Strategy and Policy at Circle, the stable coin issuers include Membrane Finance, Fiat Republic, Crypto.Com, Circle, Banking Circle, Stable Mint, StabIR, Societe Generale, Schuman Financial, and Quantoz Payments.

Conspicuously absent from the list is Tether, the largest stablecoin issuer in the world. At the time of writing, Tether's USDT stablecoin had a market capitalization of 114 billion dollars, dwarfing all other stablecoins. Its omission from the EU's list of approved stablecoin issuers has raised eyebrows among industry observers.

This decision by the EU highlights a trade-off that regulators around the world are grappling with: striking a balance between fostering innovation and protecting consumers in the rapidly evolving digital asset landscape. While the EU's early efforts in crypto regulation were lauded by global and US lawmakers, some argue that the union has since fallen behind in adapting its regulatory framework.

The exclusion of Tether from the EU's list of approved stablecoin issuers is a clear indication of the bloc's conservative approach to crypto regulation. This stance has drawn criticism from some quarters, who argue that it stifles innovation and makes Europe less attractive to foreign investors and companies.

An emissary for Tether provided an anonymous statement to Cointelegraph, expressing disappointment with the EU's actions and highlighting the need for greater clarity in the decision-making process.

“We can't help but feel disappointed when we see rushed actions brought on by statements which do little to clarify the basis for such moves. Not much has been done to fix the core issues.”

Natalia Latka, Director of Public Policy and Regulatory Services at Merkle Science, also commented on Tether's omission from the document.

“The extreme measures proposed in MiCA regulations might cut off Europe's digital asset economy from the rest of the world. This could scare off foreign investors and companies and doom the system to slack.”