EU Orders Crypto Firms to Drop Non-MiCA Stablecoins

3-Month Wind-Down: EU CASPs must phase out non-MiCA stablecoin services by January 8, 2027. Market Impact: Access to USDT narrows further while MiCA-compliant tokens like USDC gain ground. The European Securities and Markets Authority (ESMA) on October 8 requested national supervisory authorities to ensure that crypto firms authorized under MiCA cease providing services related to stablecoins that do not comply with the regulation across the European Union. Existing positions must be addressed as soon as possible and within a maximum of three months, with certain selling, conversion, or withdrawal functions temporarily maintained to support the wind-down process.