Stuart Hoegner, the general counsel of Tether and Bitfinex, has stepped down from his role and will be succeeded by Michael Hilliard, who has worked closely with Hoegner for several years.
In a statement shared with Cointelegraph on Jan. 2, Tether announced Hoegner’s retirement and confirmed Hilliard as the new general counsel.
“Michael’s deep understanding of both companies’ operations, coupled with his strategic approach to legal and regulatory challenges, has been critical to advancing both Tether and Bitfinex’s mission,” the company stated.
Uncertainty Around USDT Compliance in Europe
The leadership change comes as Tether faces ambiguity regarding its compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulations, which took effect on Dec. 30.
The new rules have left stablecoin issuers, including Tether, in a gray area.
“No regulators have explicitly stated that USDT isn’t compliant, but this does not mean that it is,” Juan Ignacio Ibañez, a member of the Technical Committee of the MiCA Crypto Alliance, told Cointelegraph.
The European Securities and Markets Authority (ESMA) has not clarified whether USDT is considered a restricted stablecoin under MiCA.
While Coinbase delisted USDT in mid-December to comply with MiCA, the stablecoin continues to trade widely in the EU as exchanges await further guidance.
USDT Market Cap Declines
USDT’s market cap dropped from $138.8 billion on Dec. 30, 2024, to a weekly low of $136.9 billion on Jan. 1, marking its steepest decline since the FTX collapse in November 2022.
Despite this, USDT remains dominant in the stablecoin market, with a share exceeding 65% in the $210 billion sector.
Additionally, on Dec. 30, Tether transferred nearly $780 million worth of Bitcoin into its corporate reserves, aligning with its commitment to allocate up to 15% of net profits toward Bitcoin purchases.
