Tether CEO Warns of EU Stablecoin Rules and Capital Controls Fueling Digital Euro Shift

Tether CEO Paolo Ardoino has raised significant concerns over evolving European Union (EU) regulations targeting stablecoins, including strict reserve requirements and emerging capital controls. In recent interviews and public comments, Ardoino criticized the EU’s proposed rule mandating that stablecoins hold 60% of reserves as uninsured cash in European banks, highlighting the risks of liquidity shortfalls and potential banking solvency crises akin to the Silicon Valley Bank collapse. His warnings come as Spain enacts a new capital control policy, imposing a €3,000 fine for failing to report cash withdrawals exceeding €150 within 24 hours, which could restrict liquidity and signal increasing regulatory scrutiny across Europe. Ardoino and other crypto leaders view these measures as accelerating the rollout and potential adoption of the digital euro, while also impacting usage and flows of stablecoins like USDT. For crypto traders, these developments suggest heightened regulatory risk for stablecoins and European banking partners, possible shifts in demand toward central bank digital currencies, and a growing interest in non-sovereign digital assets amid tightening capital controls.