MiCA Brings Clarity, But Stablecoin Limits Need Improvement
Jason Allegrante, chief legal and compliance officer at Fireblocks, posted that the European Union's Regulation on Markets for Crypto Assets (MiCA), set to be implemented this summer, is an important milestone for the crypto industry. While MiCA wisely excludes decentralized smart contracts and NFTs, there are issues with issuance and trading limits for stablecoins such as USDT, USDC and BUSD. The current limit of 1 million transactions or €200 million is far from sufficient to support the current level of activity. The total global market capitalization of stablecoins amounts to $162 billion, 75% of which is USDT, USDC, and BUSD.These EU restrictions could lead to significant disruptions in the crypto ecosystem, especially in non-speculative use cases.
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