The full removal of these tokens is set for March 31, 2025. Senator Elizabeth Warren also recently raised concerns over Commerce Secretary nominee Howard Lutnick’s ties to Tether, and questioned his ability to regulate the crypto industry impartially. Meanwhile, the EU sees a digital euro as a defense against the dominance of US dollar stablecoins, especially in response to Trump’s executive order encouraging USD-backed assets while banning central bank digital currencies (CBDCs) in the US.
Crypto.com Announces USDT and Stablecoin Delistings
Crypto.com became one of the first crypto exchanges to announce the delisting of Tether’s USDT and nine other tokens in Europe after the implementation of the Markets in Crypto-Assets Regulation (MiCA) framework. The exchange will suspend purchases of these assets on Jan. 31 to align with European regulatory requirements.
Deposits will be disabled, while withdrawals for the affected tokens will be available until the end of the first quarter of 2025. The complete delisting is scheduled for March 31, after which any remaining holdings will be automatically converted to a MiCA-compliant stablecoin or another asset of corresponding market value.
The delisting will impact a total of ten cryptocurrencies, including Wrapped Bitcoin (WBTC), Dai (DAI), Pax Dollar (PAX), Pax Gold (PAXG), PayPal USD (PYUSD), Crypto.com Staked ETH (CDCETH), Crypto.com Staked SOL (CDCSOL), Liquid CRO (LCRO), and XSGD. The European Securities and Markets Authority (ESMA) urged European crypto asset service providers to restrict non-MiCA-compliant stablecoins by Jan. 31.
The delisting of USDT in the European Union has been a serious topic since Coinbase first announced its decision to remove the stablecoin in October of 2024. Coinbase Europe later completed its delisting, and provided its users the option to convert their USDT holdings into MiCA-compliant alternatives like Circle’s USD Coin (USDC). Despite MiCA regulations coming into full effect on Dec. 30, multiple crypto asset service providers in the EU continued trading USDT. However, more exchanges are now taking steps to comply with regulations.
(Source: ESMA)
Some crypto firms in Europe have successfully obtained MiCA licenses, while others, including Crypto.com, are in the process of securing one in Malta. According to Juan Ignacio Ibañez, a member of the Technical Committee of the MiCA Crypto Alliance, ESMA’s directive makes it very clear that by March 31, “no trace of USDT should remain, not even in ‘sell-only’ mode.” Meanwhile, its closest competitor, USDC, already received MiCA approval in July 2024 and currently holds a market cap of $52 billion.
Warren Raises Concerns Over Lutnick’s Tether Connections
Tether is also in trouble with Senator Elizabeth Warren. She recently raised concerns over Howard Lutnick, President Donald Trump’s nominee for Commerce Secretary, because of his firm’s connections with stablecoin issuer Tether.
In a letter dated Jan. 27, Warren shared that she is very alarmed over Lutnick’s involvement with Tether, and called it a “known facilitator of criminal activity” due to Cantor Fitzgerald’s role as both a stakeholder and asset manager for the company. While Lutnick agreed to divest his interest in Cantor Fitzgerald, Warren questioned whether his longstanding ties to the firm and its affiliates could compromise his ability to act in the best interest of the American people if confirmed.
Warren believes that Lutnick’s position as Commerce Secretary will give him a lot of influence over policies that affect Tether and the broader cryptocurrency industry. She also specifically requested answers to thirteen questions about his financial stake in Tether, any discussions he may have had with Trump administration officials about the company, and whether Cantor Fitzgerald conducted due diligence to ensure Tether’s compliance with financial regulations like Know Your Customer rules, the Bank Secrecy Act, and anti-money laundering laws. She has set a deadline of Feb. 10 for Lutnick’s response.
Warren has long been critical of the crypto sector, and argued that Tether is used for illicit activities, including money laundering, sanctions evasion, and even financing North Korea’s nuclear program. Despite these allegations, Tether actively cooperated with authorities in cracking down on criminal activity.
On Jan. 27, the company worked with blockchain firms Tron and TRM Labs to help Spanish law enforcement freeze $26.4 million linked to a money laundering network. In September, Tether also collaborated with the FBI to recover $6 million that was stolen by crypto scammers targeting US citizens.
Warren is very notorious for advocating for stricter regulation of the industry. She urged Trump’s Treasury nominee to consider imposing tougher laws and repeatedly introduced the Digital Asset Anti-Money Laundering Act to bring the crypto sector under existing financial crime frameworks. The legislation was introduced in both 2022 and 2023, but it faced strong opposition from crypto advocacy groups and national security officials.
EU Sees Digital Euro as Defense Against US Stablecoins
Meanwhile, President Donald Trump’s executive order on digital financial technology intensified concerns in the European Union over the dominance of the US dollar in the stablecoin market. European Central Bank executive board member Piero Cipollone addressed these concerns at the 13th ILF Conference on the Future of the Financial Sector in Frankfurt. According to Cipollone, the overwhelming reliance on US dollar-backed stablecoins is a key reason for the EU’s continued efforts to develop its own central bank digital currency (CBDC).
During the panel, Cipollone pointed to Europe’s growing dependence on international card schemes, which process over 60% of card payments in the EU. He also mentioned the sharp increase in mobile app payments in the region, which rose from just 1% of transactions in 2019 to 9% in 2024.
His biggest concern, however, was the dominance of US dollar stablecoins, which account for 97% of the global stablecoin market that is currently valued at $222 billion. He held firm that a digital euro is essential to ensure continued access to central bank money and to maintain European banks’ role in the financial system.
Stablecoin market (Source: CoinGecko)
The EU’s concerns were increased by the Trump administration’s clear stance on promoting the US dollar’s sovereignty. In an executive order on strengthening American leadership in digital finance, the administration pledged to support the development and growth of lawful and legitimate dollar-backed stablecoins worldwide. While the order openly encourages US dollar stablecoins, the order explicitly bans the establishment, issuance, and use of central bank digital currencies in the United States. This could create some problems for global CBDC initiatives.
For the most part, Trump’s executive order is seen as a pro-crypto move, but some analysts argue that its ultimate goal is to reinforce the dominance of the US dollar on a global scale. Attorney David Lesperance suggested that while the order wants to position the US at the forefront of digital financial assets, it also signals that any technology threatening the US dollar’s reserve currency status will face strong opposition.
He believes that Trump could use economic leverage, like tariffs, to pressure the EU and other economies into stopping their own CBDC development. Tensions could soon start to rise as the EU pushes forward with the digital euro and the US strengthens its dollar-backed stablecoins.
