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MiCA's stablecoin transaction cap stifles crypto adoption, say lawyers

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With a $216 million cap to be imposed on stablecoins such as USDT and USDC, some say crypto adoption could be “stifled” under MiCA unless it changes.

Stablecoin use could be "stifled" by daily transaction caps in the European Union's Markets in Crypto-Assets (MiCA) legislation, with some calling for the framework to be revised.

On May 31, MiCA was signed into law which paved the way for the world’s first regulatory guidance on cryptocurrencies to come into effect.

The legislation was received positively by many in the crypto industry, but one of the more controversial measures introduced is the $219 million (200 million euro) cap on daily transactions for private stablecoins such as Tether (USDT) and Circle’s USD Coin (USDC).

EU news

MiCA has been officially signed into law today by the European Parliament President Roberta Metsola and Swedish Rural Affairs Minister Peter Kullgren (Sweden holds the presidency of the Council of the EU atm).

Next steps:
1) Publication in the official journal of… pic.twitter.com/qY8QPnEZ9A

— Patrick Hansen (@paddi_hansen) May 31, 2023

Speaking to Cointelegraph, Chander Agnihotri and Rachel Cropper-Mawer, respectively the legal director and partner at global law firm Clyde and Co said the use of large stablecoins could “quickly become stifled” and regulators should look to revisit the daily limits.

Stablecoins aim to mirror the price of fiat currencies — mainly the U.S. dollar — and were introduced as a solution to address the price volatility of cryptocurrencies such as Bitcoin (BTC) and Ether (ETH).

However, in the wake of the collapse of Terra’s algorithmic stablecoin UST in May 2022 and the brief de-pegging of USDC following the collapse of Silicon Valley Bank in early 2023, Agnihotri claimed regulators are well within their rights to have become laser-focused on the regulation of private stablecoins.

“On account of their stronger links to the traditional financial system — through the use of reserves — regulators have been particularly concerned by the possible impact that the failure of a larger stablecoin may have.”

The 200 million euro cap is “not tantamount to a ban” said Cropper-Mawer and if the threshold is passed, then the issuers will be “required to cease further issuing activities and work with regulators to bring transactions under the cap.”

However, Cropper-Mawer noted with the increasing popularity of private stablecoins, it’s anticipated that the use of certain larger stablecoins will “quickly become stifled” but added she anticipates legislators will "revisit this issue."

With stablecoin use possibly being dampened by the current rules, Cropper-Mawer said it would be “sensible” to assume that central bank digital currencies (CBDCs) may “flourish at a more rapid rate than otherwise might be the case.”

However, she quickly noted that MiCA lawmakers are unlikely to have missed the potential negative impacts these regulations could have, especially when looking at the prevalence of private stablecoins in other markets.

“If the relatively unfettered use of stablecoins is permitted in other jurisdictions, this could adversely impact the crypto market in the EU.”

Despite receiving an expected level of criticism for such a wide-ranging and expansive piece of legislation, Agnihotri notes that the majority of feedback towards MiCA has been largely positive.

“Under MiCA, start-ups and smaller entities will have better access to the market, fostering innovation and competition. As with any piece of legislation, there will be parts that would benefit from adjustment.”

Tether speaks on MiCA

Tether’s chief technology officer Paolo Ardoino told Cointelegraph there would need to be continued conversation and a potential revision of the framework before the guidelines were enacted upon private stablecoin providers.

“Further discussions on the technical implementation standards are crucial in providing clarity to the market over certain provisions and we look forward to the outcomes of these discussions in due course,” he said.

Related: Crypto in Europe: Economist breaks down MiCA and future of stablecoins

Ardoino didn’t comment on the specifics of the legislation and how it could potentially apply to the trading of USDT in Europe but he praised MiCA for being a “commendable” initiative and described the legislation as “arguably the most comprehensive the industry has seen to date.”

He acknowledged the daily trading cap may have an impact on private stablecoins such as USDT. Still, he said that “the legislation notes that these limits apply when the stablecoin is used for certain purposes.”

There has been a range of criticisms, with some arguing that it’s overly cautious and others expressing concerns that it fails to adequately mitigate threats to the stability of the broader financial market.

Cropper-Mawer explained that “ultimately, the success of MiCA will depend largely upon how it’s enforced at a member-state level and whether lawmakers will continue to keep it under review, especially when considering the speed at which innovation occurs in the crypto industry.”

#MiCA enters into force at the end of June.

️ To begin implementation, #ESMA with relevant stakeholders will launch 3⃣ public consultations in July, October & Q1 2024 → https://t.co/AvePQSapZp.

Details on the duration of each public comment period. pic.twitter.com/QFlERttwxR

— ESMA - EU Securities Markets Regulator (@ESMAComms) June 12, 2023

MiCA will be implemented following its publication in the Official Journal of the EU, with many of the regulations and guidelines for crypto firms expected to begin sometime in 2024.

Asia Express: Yuan stablecoin team arrested, WeChat’s new Bitcoin prices, HK crypto rules

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  • 14.10.25 08:46 robertalfred175

    CRYPTO SCAM RECOVERY SUCCESSFUL – A TESTIMONIAL OF LOST PASSWORD TO YOUR DIGITAL WALLET BACK. My name is Robert Alfred, Am from Australia. I’m sharing my experience in the hope that it helps others who have been victims of crypto scams. A few months ago, I fell victim to a fraudulent crypto investment scheme linked to a broker company. I had invested heavily during a time when Bitcoin prices were rising, thinking it was a good opportunity. Unfortunately, I was scammed out of $120,000 AUD and the broker denied me access to my digital wallet and assets. It was a devastating experience that caused many sleepless nights. Crypto scams are increasingly common and often involve fake trading platforms, phishing attacks, and misleading investment opportunities. In my desperation, a friend from the crypto community recommended Capital Crypto Recovery Service, known for helping victims recover lost or stolen funds. After doing some research and reading multiple positive reviews, I reached out to Capital Crypto Recovery. I provided all the necessary information—wallet addresses, transaction history, and communication logs. Their expert team responded immediately and began investigating. Using advanced blockchain tracking techniques, they were able to trace the stolen Dogecoin, identify the scammer’s wallet, and coordinate with relevant authorities to freeze the funds before they could be moved. Incredibly, within 24 hours, Capital Crypto Recovery successfully recovered the majority of my stolen crypto assets. I was beyond relieved and truly grateful. Their professionalism, transparency, and constant communication throughout the process gave me hope during a very difficult time. If you’ve been a victim of a crypto scam, I highly recommend them with full confidence contacting: 📧 Email: [email protected] 📱 Telegram: @Capitalcryptorecover Contact: [email protected] 📞 Call/Text: +1 (336) 390-6684 🌐 Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 15.10.25 18:07 crypto

    Cryptocurrency's digital realm presents many opportunities, but it also conceals complex frauds. It is quite painful to lose your cryptocurrency to scam. You can feel harassed and lost as a result. If you have been the victim of a cryptocurrency scam, this guide explains what to do ASAP. Following these procedures will help you avoid further issues or get your money back. Communication with Marie ([email protected] and WhatsApp: +1 7127594675) can make all the difference.

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

  • 15.10.25 21:52 harristhomas7376

    "In the crypto world, this is great news I want to share. Last year, I fell victim to a scam disguised as a safe investment option. I have invested in crypto trading platforms for about 10yrs thinking I was ensuring myself a retirement income, only to find that all my assets were either frozen, I believed my assets were secure — until I discovered that my BTC funds had been frozen and withdrawals were impossible. It was a devastating moment when I realized I had been scammed, and I thought my Bitcoin was gone forever, Everything changed when a close friend recommended the Capital Crypto Recover Service. Their professionalism, expertise, and dedication enabled me to recover my lost Bitcoin funds back — more than €560.000 DEM to my BTC wallet. What once felt impossible became a reality thanks to their support. If you have lost Bitcoin through scams, hacking, failed withdrawals, or similar challenges, don’t lose hope. I strongly recommend Capital Crypto Recover Service to anyone seeking a reliable and effective solution for recovering any wallet assets. They have a proven track record of successful reputation in recovering lost password assets for their clients and can help you navigate the process of recovering your funds. Don’t let scammers get away with your hard-earned money – contact Email: [email protected] Phone CALL/Text Number: +1 (336) 390-6684 Contact: [email protected] Website: https://recovercapital.wixsite.com/capital-crypto-rec-1

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