Kraken Delist USDT Europe, a cryptocurrency exchange, has guaranteed its users that it will continue to comply with all regulatory requirements and has no intention of delisting the Tether stablecoin USDT in Europe. Mark Greenberg, Kraken’s global head of asset growth and management, addressed a story that said the exchange was “actively reviewing” the possibility of delisting USDT from the European market in a social media announcement.
According to Greenberg, USDT is highly sought for by European clients, and the firm is actively exploring all possible avenues to provide USDT in the future. Stablecoins, a type of cryptocurrency that promises a constant value relative to fiat currencies, are the primary target of the new Markets in Crypto Assets law (MiCA) that will be enforced by the European Union later this year.
SEC’s Lawsuit Against Kraken
Suing Kraken was the Securities and Exchange Commission (SEC) in November 2023. It was accused by the SEC of running a securities trading platform without registration. Months after settling claims related to Kraken’s previous staking service, the company was hit with this lawsuit. Since the lawsuit was based entirely on an argument about Kraken’s registration as an unlicensed securities business, Kraken moved to dismiss it in February 2024. Kraken Delist USDT Europe stated that SEC-compliant cryptocurrencies ought to be regarded as commodities rather than securities.
But now Kraken is taking a harder line, asking the court to reject the claims so the US financial regulatory system doesn’t undergo a “significant reordering,” as revealed in Thursday’s court documents in the Northern District of California. In its response to Kraken’s dismissal request, the SEC argued that it is within its constitutionally authorized scope to take enforcement action. Its function in regulating securities intermediaries’ registration is emphasized. To prevent a “significant reordering” of the US financial regulatory structure, Kraken Delist USDT Europe pleaded with the US court to dismiss the SEC accusations against it.
The relative security of USD Coin (USDC) and Tether’s USDT, two stablecoins, has been the subject of much debate.The market valuation of USDT in April was $104 billion, which is three times more than that of USDC, which was $32 billion. We can thank the network effect for a portion of the delta. Although USDT gained popularity as a trading pair on cryptocurrency exchanges after its 2014 inception, USDC did not follow until 2018. Daily trading volume shows that the exchange plays a significant influence in USDT’s supremacy. The volume of USDT trades is 7.5 times higher than that of USDC.
Kraken Sets The Record Straight
“We are not planning to delist USDT from the EU market at this time,” Greenberg stated, putting an end to speculation that Kraken may do just that. The importance of USDT in the European market was highlighted by him, and Kraken assured USDT of continued support.
In light of the impending MiCA rules, Greenberg said that Kraken is looking into all possible avenues to ensure that USDT remains available. As an additional signal that Kraken will follow the law if Tether is eventually banned, he said that the company will comply with all legal regulations, regardless of whether they agree or disagree with them.
According to Greenberg, there is still no finalization of the MiCA regulations concerning stablecoins. Kraken Delist USDT Europe will keep providing all applicable stablecoins to its European clients until the regulatory stance is clarified. The future of stablecoins in the EU is unknown, though, because the new regulations are scheduled to take effect in July.
