Tether CEO Warns of European Bank Failures Amid Crypto Regulation Risks

Tether CEO Paolo Ardoino has issued a stark warning about Europe’s financial stability, predicting a wave of bank failures triggered by risky lending practices and stringent new cryptocurrency regulations. In a recent interview, Ardoino criticized the EU’s stablecoin framework for forcing companies to hold up to 60% of reserves in uninsured bank deposits—a policy he likened to "spitting on a fire" given Europe’s €100,000 deposit insurance limit.

The comments highlight growing tensions between crypto innovators and traditional financial regulators. Ardoino’s scenario of a €6 billion exposure in small, underprotected banks underscores systemic vulnerabilities as digital assets gain mainstream traction. No specific cryptocurrencies or exchanges were mentioned in the remarks.