The post Tether Exits Europe: Will Trump Administration Push It Out Of US Too? appeared on BitcoinEthereumNews.com.

Tether recently shut down operations of its Euro Tether (EURT) after facing heavy challenges from regulators in Europe. The company failed to comply with Markets in Crypto-Assets (MiCA) regulations, which are the European Union’s new digital asset regulations. MiCA was incorporated to ensure greater transparency, security and resilience in the cryptocurrency market. The withdrawal of EURT raises serious questions regarding Tether’s ability to operate with stringent regulatory regimes, a hard moment for crypto Europe. To cut down the volatility and risks of digital currencies, European regulators have drafted the MiCA regulations. Another regulation they could not survive was EURT, which required either too many adjustments (or costs) that were needed, so the project was stopped. Tether’s exit from the European market illustrates how MiCA will affect the way other cryptocurrencies in Europe navigate relations with regulators. – Advertisement – Prospective Regulatory Challenges in the US For Tether That brings us to the United States where we are on the verge of a real regulatory reform under the incoming Trump administration. Last week, a cryptocurrency analyst put out a tweet speculating about the potential ramifications of Tether if the US adopted a regulatory direction comparable to Europe’s. Tether’s US operations, particularly US Dollar Tether (USDT), could experience similar compliance failures. This could disrupt not only Tether but the wider cryptocurrency market, according to the tweet. In contrast with Europe, Donald Trump’s administration has taken a more favorable stance towards the process of crypto regulation. This is partly because the crypto industry has been making large, historical political contributions (for crypto) to Trump’s campaign. Notably, this contribution is greater than that traditional sectors like fossil fuels. Promises such as making Bitcoin part of the country’s reserves, and Trump’s positive rhetoric towards cryptocurrencies suggest a silver lining for the digital currency world. Historical…

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Filed under: News - @ December 8, 2024 10:10 pm