Market
MiCA Propels Circle’s Euro Stablecoin, Says Jeremy Allaire
Circle co-founder and CEO Jeremy Allaire shilled USDC and EURC stablecoins in an interview on Monday. He anticipates more competition in the space as the EU’s regulatory framework toughens.
Under MiCA, stablecoin issuers must obtain authorization and be licensed by the relevant national authorities in the EU.
Circle Pioneers MiCA Compliance
Circle secured an Electronic Money Institution (EMI) license on Monday. This is a requirement for any issuer looking to offer dollar- and euro-pegged crypto tokens in the European Union (EU) under the Markets in Crypto Assets (MiCA) framework. It permits the firm to “onshore” its Euro-denominated EURC stablecoin to customers within the EU.
“Circle announces that USDC and EURC are now available under new EU stablecoin laws. Circle is the first global stablecoin issuer to be compliant with MiCA. Circle is now natively issuing both USDC and EURC to European customers effective July 1,” Allaire wrote.
Banks and EMIs can now issue and utilize Euro stablecoins as a core part of their products and services.
Read more: What Is Markets in Crypto-Assets (MiCA)? Everything You Need To Know
In a separate report, Allaire highlighted that compliance is the firm’s competitive advantage. He underscored Circle EURC stablecoin and USD Coin’s commitment to regulations stipulated by the MiCA framework.
“The day that MiCA came into law, we announced our Euro stablecoin EURC. We also announced our intention to make our stablecoins fully compliant with MiCA and we are very committed to that path. This is because legal electronic money in the form of Euro or dollar that runs on blockchains is a huge opportunity,” Allaire said in an interview.
Allaire cites two factors that embolden Circle: MiCA’s promotion of a pro-Euro digital asset environment and the firm’s strong compliance track record. This, in his opinion, positions the EURC to become much bigger as regulations in Europe allow Euro stablecoins to be part of a growth-bound financial system.
Why Tether’s USDT is in the Sidelines
The assertion comes after crypto exchanges delisted Euro-denominated stablecoins in their resolve to achieve MiCA compliance. Among them, Bitstamp revealed that the Euro Tether (EURT) stablecoin was delisted, joining the likes of Binance, Kraken, OKX, and Uphold, which also shed EURT.
Tether, the issuer of USDT stablecoin, indicated that it does not currently aim to comply with MiCA, which explains why it is subject to restrictions or cancellation on exchanges. Tether CEO Paolo Ardoino is against MiCA’s expectation of 60% of backing in bank cash, citing “bank failure risk.”
“Stablecoins should be able to keep 100% of reserves in treasury bills, rather than exposing themselves to bank failures by keeping big chunks of reserves in uninsured cash deposits. In case of bank failure, securities return to the legitimate owner,” Ardoino wrote in April.
For Tether, this could be another brick in the regulatory wall, shoving it to the sidelines over time as regulation in stablecoins gathers pace around the world.
Nevertheless, the landmark development sets the stage for increased adoption of Euro digital currency in the form of Euro stablecoins. With a clear set of guidelines for Euro digital currency issuance and operations, the new framework will promote a highly competitive market.
Allaire agrees with this speculation, saying that he anticipates more competition. In his opinion, new regulations that streamline the industry tend to attract more competition. Binance CEO Richard Teng lauded Circle in a post, calling for more players in the space.
“USDC becoming a MiCA-compliant e-money token (EMT) marks a positive step forward for the crypto ecosystem in the EEA region. We are hopeful that there’ll be more MiCA-compliant EMTs soon,” Teng wrote.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
With the MiCA regulations in effect, firms will be held more accountable. Their risk and compliance management, banking infrastructure, and assurances from major public audit firms will also be under more scrutiny.
The oversight, promoting regulatory clarity and transparency, will inspire increased customer confidence because of improved consumer protection. For new players looking to join the space, however, entry barriers will likely be higher as the MiCA framework aims to achieve its mandate — to protect consumers and investors, ensure financial stability, and foster innovation.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
ETF issuer WisdomTree’s European division just announced a new ETP based on XRP. This product is currently available in four EU countries, which has led XRP’s price to jump slightly.
ETPs are a common issuer strategy to earn revenue without ETF approval, but Europe will not necessarily approve one even if the US does so.
WisdomTree’s XRP ETP
WisdomTree, one of the Bitcoin ETF issuers in the US, announced that its European branch is offering an exchange-traded product (ETP) based on XRP. This new product is currently available in Germany, Switzerland, France, and the Netherlands. A growing number of issuers have filed for an XRP ETF, but WisdomTree is taking a slightly different tack.
“The WisdomTree Physical XRP ETP offers a simple, secure, and low-cost way to gain exposure to XRP, one of the largest cryptocurrencies by market capitalization. Backed 100% by XRP, XRPW is the lowest-priced XRP ETP in Europe, providing direct spot price exposure,” the announcement claimed.
The possibility of an official XRP ETF is growing with the current bull market, and Ripple CEO Brad Garlinghouse considers it “inevitable.” Still, it hasn’t happened yet, and ETP offerings allow issuers to somewhat address customers’ requirements. BitWise, which has also filed for an XRP ETF in the US, recently acquired a European ETP issuer to enter the same market.
WisdomTree, however, is no stranger to this market strategy. In May this year, it won approval to offer ETPs based on Bitcoin and Ethereum to British investors.
The UK has not yet approved a full ETF for either of these assets, but WisdomTree still gained market access. Even a fraction of the XRP market could also prove lucrative; the asset’s value spiked today.
WisdomTree Europe’s strategy page does not describe any further actions upon full approval. Even if the US approves an XRP ETF under the SEC’s new leadership, that won’t necessarily benefit WisdomTree’s European branch. For now, these ETPs built on XRP will have to suffice for this market.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
Ethereum price started a fresh increase above the $3,220 zone. ETH is rising and aiming for more gains above the $3,350 resistance.
- Ethereum started a fresh increase above the $3,220 and $3,300 levels.
- The price is trading above $3,250 and the 100-hourly Simple Moving Average.
- There is a short-term contracting triangle forming with resistance at $3,360 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could gain bullish momentum if it clears the $3,385 resistance zone.
Ethereum Price Regains Traction
Ethereum price remained supported above $3,000 and started a fresh increase like Bitcoin. ETH gained pace for a move above the $3,150 and $3,220 resistance levels.
The bulls pumped the price above the $3,300 level. It gained over 10% and traded as high as $3,387. It is now consolidating gains above the 23.6% Fib retracement level of the recent move from the $3,036 swing low to the $3,387 high.
Ethereum price is now trading above $3,220 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $3,350 level. There is also a short-term contracting triangle forming with resistance at $3,360 on the hourly chart of ETH/USD.
The first major resistance is near the $3,385 level. The main resistance is now forming near $3,420. A clear move above the $3,420 resistance might send the price toward the $3,550 resistance. An upside break above the $3,550 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,650 resistance zone or even $3,880.
Another Decline In ETH?
If Ethereum fails to clear the $3,350 resistance, it could start another decline. Initial support on the downside is near the $3,300 level. The first major support sits near the $3,250 zone.
A clear move below the $3,250 support might push the price toward $3,220 or the 50% Fib retracement level of the recent move from the $3,036 swing low to the $3,387 high. Any more losses might send the price toward the $3,150 support level in the near term. The next key support sits at $3,050.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Major Support Level – $3,250
Major Resistance Level – $3,385
Ethereum price started a fresh increase above the $3,220 zone. ETH is rising and aiming for more gains above the $3,350 resistance.
- Ethereum started a fresh increase above the $3,220 and $3,300 levels.
- The price is trading above $3,250 and the 100-hourly Simple Moving Average.
- There is a short-term contracting triangle forming with resistance at $3,360 on the hourly chart of ETH/USD (data feed via Kraken).
- The pair could gain bullish momentum if it clears the $3,385 resistance zone.
Ethereum Price Regains Traction
Ethereum price remained supported above $3,000 and started a fresh increase like Bitcoin. ETH gained pace for a move above the $3,150 and $3,220 resistance levels.
The bulls pumped the price above the $3,300 level. It gained over 10% and traded as high as $3,387. It is now consolidating gains above the 23.6% Fib retracement level of the recent move from the $3,036 swing low to the $3,387 high.
Ethereum price is now trading above $3,220 and the 100-hourly Simple Moving Average. On the upside, the price seems to be facing hurdles near the $3,350 level. There is also a short-term contracting triangle forming with resistance at $3,360 on the hourly chart of ETH/USD.
The first major resistance is near the $3,385 level. The main resistance is now forming near $3,420. A clear move above the $3,420 resistance might send the price toward the $3,550 resistance. An upside break above the $3,550 resistance might call for more gains in the coming sessions. In the stated case, Ether could rise toward the $3,650 resistance zone or even $3,880.
Another Decline In ETH?
If Ethereum fails to clear the $3,350 resistance, it could start another decline. Initial support on the downside is near the $3,300 level. The first major support sits near the $3,250 zone.
A clear move below the $3,250 support might push the price toward $3,220 or the 50% Fib retracement level of the recent move from the $3,036 swing low to the $3,387 high. Any more losses might send the price toward the $3,150 support level in the near term. The next key support sits at $3,050.
Technical Indicators
Hourly MACD – The MACD for ETH/USD is gaining momentum in the bullish zone.
Hourly RSI – The RSI for ETH/USD is now above the 50 zone.
Major Support Level – $3,250
Major Resistance Level – $3,385
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