Kraken Affirms No Plans to Delist Tether’s USDT in Europe
Cryptocurrency exchange Kraken has assured its users that there are no plans to delist the Tether stablecoin USDT from the European market, and the company will continue to comply with all legal requirements.
In a social media announcement, Kraken’s Global Head of Asset Growth and Management, Mark Greenberg, responded to recent reports suggesting that the exchange was “actively reviewing” and potentially planning to delist USDT from the European market.
Greenberg stated that European customers value the use of USDT, and the company will continue to consider all options for offering USDT under the forthcoming regulatory framework.
“Let’s be clear: @krakenfx continues to list USDT in Europe and we have no plans to delist at this time.
We know our European clients value access to USDT and we continue to look at all options to offer USDT under the upcoming regime.
We will of course follow all legal…”
— Mark Greenberg (@marklg) May 18, 2024
MiCA and Its Implications
The European Union’s Markets in Crypto-Assets Regulation (MiCA) is set to take effect later this year, with a significant focus on stablecoins, which are cryptocurrencies designed to maintain a stable value relative to a reference currency.
SEC Lawsuit Against Kraken
In November 2023, the Securities and Exchange Commission (SEC) filed a lawsuit against Kraken, alleging that it operated an unregistered securities trading platform. This lawsuit followed a settlement earlier in the year where Kraken resolved charges related to its previous staking services.
In February 2024, Kraken filed a motion to dismiss the lawsuit, arguing that the SEC’s case relied solely on the premise that Kraken operated as an unlicensed securities entity. Kraken contended that cryptocurrencies compliant with SEC regulations should be treated as commodities rather than securities.
Kraken has since reinforced its position, urging the court to dismiss these charges to prevent a “major rearrangement” of the U.S. financial regulatory structure, according to court documents filed in the Northern District of California on Thursday.
Tether (USDT) vs. USD Coin (USDC) Security Debate
Discussions about the safety of stablecoins Tether’s USDT and USD Coin’s USDC have been ongoing. In April, USDT had a market capitalization of $104 billion, more than triple that of USDC’s $32 billion. Part of this disparity can be attributed to network effects, as USDT was launched in 2014, four years earlier than USDC, which debuted in 2018. USDT has become a popular asset for trading pairs on cryptocurrency exchanges. Its dominance in daily trading volume is clear, with USDT’s trading volume being 7.5 times that of USDC.
