Could a MiCA Change Bring Tether Back to European Markets?

The European Union currently requires stablecoin issuers to meet strict local licensing standards under its MiCA rulebook. This has forced major assets like Tether to step back from European exchanges rather than adjust their global operating models to fit EU requirements. Circle is now suggesting an alternative approach called equivalence, which would allow the EU to recognize and accept the home rules that a company already follows in its country of origin.

Patrick Hansen, who leads EU policy for Circle, points out that the vast majority of stablecoin issuers operate outside of Europe. By requiring each firm to set up a dedicated EU company, the current regulations create a barrier that keeps most global stablecoins away from European users. Implementing an equivalence model could allow these assets to return without needing to create separate European versions of their coins.

While this change would technically help competitors like Tether, the path forward remains uncertain. Tether currently operates under rules in El Salvador, and it remains unclear if the EU would view those standards as sufficient. Additionally, the EU has its own ambitions for a digital euro, making it cautious about adopting assets pegged to the US dollar.

For now, the regulatory framework remains rigid. The EU is scheduled to review its crypto rules in 2026, which provides the first real opportunity to discuss whether an equivalence system should be added to the law. Traders should watch these upcoming policy discussions closely, as any shift could drastically change which stablecoins are available to European investors.