Circle Secures Europe’s First Stablecoin License Through MiCA

The recent development in the EU has brought clarity to the status of stablecoins, as the Markets in Crypto-Assets Regulation (MiCA) has outlined strict rules for their usage. MiCA imposes a daily issuance limit of $215 million for firms operating under the EU framework, aiming to regulate the use of stablecoins within the region. This regulatory shift has created an opportunity for Circle, as they secured the first MiCA stablecoin license, potentially positioning themselves to challenge Tether and USDT as the leading stablecoin in multiple jurisdictions.

With impending U.S. stablecoin regulations, Circle may strengthen its position as a global stablecoin powerhouse. Despite this, USDC faces a significant challenge in catching up to Tether in terms of market cap. Tether currently holds the top position with $113 billion, while USDC trails behind at $32 billion.

Although USDC experienced a peak of around $55 billion in June 2022, it currently stands below that value.

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