Tether and Bitfinex’s General Counsel, Stuart Hoegner, is retiring after a long tenure. Michael Hilliard, a seasoned legal specialist who has worked closely with Hoegner for many years, will take over.
The move occurs at a vital time for Tether, as the European Union’s Markets in Crypto-Assets (MiCA) regulation recently went into effect. MiCA imposes additional regulations on stablecoin issuers, including standards for reserves and liquidity, posing significant obstacles for companies such as Tether.
In a statement, Tether emphasized Hilliard’s extensive knowledge of both firms’ operations as well as his strategic approach to regulatory challenges. We anticipate his leadership to guide Tether and Bitfinex through this evolving landscape and further their objectives.
Stuart Hoegner, who joined Bitfinex in 2014, has been essential in guiding the company through complicated legal and regulatory settings throughout the years. Tether’s CEO expressed appreciation for Hoegner’s essential services and confidence in Hilliard’s ability to carry on this legacy.
Meanwhile, Tether is experiencing regulatory uncertainties in the European Union. MiCA has left stablecoin issuers in the dark, raising concerns about compliance for Tether’s USDT stablecoin. Although no regulators have expressly declared USDT non-compliant, its status under MiCA is uncertain.
The implementation of MiCA has already influenced the stablecoin market. Recently, Tether’s market capitalization experienced a significant decline, the largest since November 2022. Despite this, USDT continues to dominate the stablecoin market, accounting for more than 65%.
We anticipate that Tether will prioritize compliance while pursuing its growth and innovation goals as it responds to legislative events and leadership changes.
