Update (Jan. 3, 2025, 2:20 am UTC)
This article has been updated to reflect that Stuart Hoegner’s retirement is a separate event from the implementation of MiCA and also adds related news about Tether.
Change in Leadership at Tether and Bitfinex
Stuart Hoegner, general counsel of Tether and Bitfinex, has retired from his role as legal chief at the two firms. He will be replaced by Michael Hilliard, who has been working alongside Hoegner for several years.
In a January 2 statement shared with Cointelegraph, Tether wrote that Hoegner had retired and would be replaced as general counsel by Tether’s current legal counsel. The firm praised Hilliard’s expertise, stating:
"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."
Uncertainty around USDT Compliance in EU
The change in leadership at Tether comes amid the implementation of MiCA (Markets in Crypto-Assets) regulations in Europe. These regulations officially took effect on December 30.
The MiCA regulations have left stablecoin issuers like Tether in limbo, with the rules not clearly stating whether the firm’s US Dollar-pegged stablecoin, USDT, complies with the new EU crypto framework.
"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 in a December 29 report.
Related:
- Tether, Tron and TRM Labs jointly froze $126M USDT in 2024
- In October 2024, the European Securities and Markets Authority (ESMA) — a key supervisor of MiCA compliance — declined to tell Cointelegraph whether USDT was seen as a restricted stablecoin under MiCA.
- A spokesperson at ESMA then said that the regulator was working with market participants and other stakeholders to address stablecoin-related issues presented in MiCA.
Tether’s Market Cap Falls
USDT’s market cap fell from $138.8 billion on December 30, 2024, to a weekly low of $136.9 billion on January 1, CoinGecko data shows. This marked the USDT market cap’s biggest dip since the FTX collapse in November 2022.
Its current market cap of $137.2 billion is 2.75% off its all-time high of $141 billion set on December 20, 2024.
Tether’s Change in Market Cap Over the Last Week
Despite the fall, USDT stablecoin dominance still sits above 65% in what has become a $210 billion market.
Also on December 30, Tether moved almost $780 million worth of Bitcoin into its corporate Bitcoin reserve in its largest move since March. In May 2023, Tether said it planned to "regularly allocate up to 15% of its net realized operating profits toward purchasing Bitcoin."
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