Tether CEO Paolo Ardoino said the company refused to apply for an EU MiCA license because of the rule requiring major stablecoin issuers to hold at least 60% of their reserves in commercial bank deposits. This decision follows a proposal by the European Central Bank and other EU central banks to remove this requirement, citing the risk that volatile stablecoin deposits could expose banks to sudden withdrawals. The central banks instead recommend liquidity requirements based on assets maturing within one to five working days; however, this proposed change has not yet been adopted.