ESMA Presses EU Firms to Drop Non-MiCA Stablecoins as USDC Wins Key Status

The European Securities and Markets Authority is calling on EU-regulated crypto firms to stop offering services involving stablecoins that don’t comply with MiCA — putting Tether’s USDT squarely in the spotlight.

The Squeeze on Non-Compliant Tokens

Per Coin Bureau, ESMA’s push targets stablecoins outside MiCA’s framework, with USDT ($184B in circulation) in the crosshairs. It follows the European Banking Authority’s October 14 decision classifying Circle’s USDC as the EU’s first "significant" e-money token, under direct EBA supervision from November 12.

USDT’s European Problem

Tether never sought MiCA authorization; regulated European platforms delisted USDT ahead of the July 1 deadline. Circle keeps stacking advantages: Binance’s $100M stake in September, USDC at 63% of stablecoin transaction volume in Q1 per Visa Onchain Analytics, and an EBA–NYDFS memorandum on cross-border USDC oversight. For European traders, the compliant stablecoin menu is shrinking — and USDT isn’t on it.

Source: The Block, Coin Bureau