Tether CEO Criticizes EU Stablecoin Regulations Amid Banking Concerns

According to PANews, Tether CEO Paolo Ardoino has expressed criticism of the European Union's regulatory framework for stablecoins during an interview on the Less Noise More Signal podcast. Ardoino highlighted that the regulations require stablecoin companies like Tether to hold a significant portion of their reserves, up to 60%, in uninsured bank deposits. He warned that the intersection of high-risk loans and new cryptocurrency rules could lead to a wave of bank failures in Europe in the near future. Ardoino further stated that the European regulatory system aims to provide more liquidity to eurozone banking institutions. However, he argued that this approach introduces "massive systemic risk" because major European banks, such as UBS, are not integrating stablecoins into their banking systems. As a result, stablecoin issuers are compelled to opt for smaller banks, which exacerbates the risk.