EU's 90-Day Stablecoin Countdown Begins: What Happens to USDT After Jan. 8? - Yahoo Finance

The European Union's Markets in Crypto-Assets (MiCA) framework is entering a critical phase for stablecoin issuers. Under the regulation, firms offering stablecoins within the EU must secure authorization from a national competent authority, and a 90-day transition window now puts that deadline near January 8. Tether, the issuer of USDT, has not yet obtained the required authorization, which raises questions about the token's status for EU-based users once that window closes.

The development matters because USDT is the largest stablecoin by market capitalization and a core source of liquidity across crypto trading pairs. If EU exchanges can no longer list or facilitate trades involving an unauthorized stablecoin, market participants could see shifts in trading volumes, spreads, and the mix of stablecoins used on European platforms. Some venues may delist or restrict USDT access, while others could transition users toward compliant alternatives such as USDC or euro-denominated tokens.

What to watch: whether Tether secures authorization before the deadline, how major EU exchanges adjust their listings, and whether any liquidity disruption spills into broader crypto markets. The outcome will also set a precedent for how other jurisdictions treat stablecoin oversight.