Coinbase delisted Tether’s USDT due to alleged non-compliance with newly effective EU MiCA regulations, leading to a 4 billion USD decrease in Tether’s market cap, now at 137 billion USD.

Despite the delisting, the European Securities and Markets Authority (ESMA) has not confirmed USDT’s compliance status, creating an atmosphere of uncertainty and speculation among investors.

As USDT faces restrictions in the EU, Circle’s USDC, compliant with MiCA, is likely to capture market share, signaling potential shifts in liquidity and competitive dynamics in the crypto space.