Tether’s General Counsel Stuart Hoegner Announces Retirement

Update (Jan. 3, 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.

Key Takeaways

• Stuart Hoegner, general counsel of Tether and Bitfinex, has retired from his role as legal chief at the two firms.
• Michael Hilliard will replace Hoegner as general counsel for Tether, bringing his deep understanding of both companies’ operations and a strategic approach to legal and regulatory challenges.
• The retirement comes amid uncertainty around USDT compliance in the EU with the implementation of MiCA.

Stuart Hoegner’s Retirement

Stuart Hoegner has retired from his role as general counsel at Tether and Bitfinex, leaving behind a legacy of significant contributions to both firms. As per an official statement shared by Tether on Jan. 2, Hoegner will be replaced by Michael Hilliard, who has been working closely with Hoegner for several years.

Michael Hilliard’s Appointment

The firm emphasized that Hilliard’s deep understanding of the companies’ operations and his strategic approach to legal and regulatory challenges have been crucial in advancing Tether and Bitfinex’s mission. With his appointment as general counsel, Hilliard will continue to ensure that both firms stay compliant with evolving regulations while driving growth.

Uncertainty Around USDT Compliance

The retirement announcement comes at a critical time for Tether, amidst the implementation of MiCA in Europe. The new regulatory framework has left stablecoin issuers like Tether in limbo, with unclear guidelines on whether its US Dollar-pegged stablecoin (USDT) complies with the new EU crypto framework.

MiCA Regulations and USDT Compliance

The MiCA regulations have sparked concerns among regulators and market participants alike. Juan Ignacio Ibañez, a member of the Technical Committee of the MiCA Crypto Alliance, shed some light on the uncertainty surrounding USDT compliance in an interview with Cointelegraph. He stated that while no regulators have explicitly stated that USDT isn’t compliant, this doesn’t necessarily mean it is.

Related Developments

Tether’s change in leadership comes amidst other significant developments related to its stablecoin and compliance with MiCA regulations. For instance:

• In October 2024, the European Securities and Markets Authority (ESMA) declined to confirm whether USDT was seen as a restricted stablecoin under MiCA.
• ESMA is working closely with market participants and stakeholders to address stablecoin-related issues presented in MiCA.

Coinbase’s Decision to Delist USDT

Despite the lack of clarity on USDT compliance, US crypto exchange Coinbase took steps to delist USDT in mid-December 2024, citing non-compliance with MiCA. However, this decision hasn’t halted trading for USDT across the EU, as many exchanges await further guidance from European authorities.

Market Impact

The uncertainty surrounding USDT compliance has had a noticeable impact on its market capitalization. According to CoinGecko data, Tether’s market cap fell from $138.8 billion on Dec. 30, 2024, to a weekly low of $136.9 billion on Jan. 1.

Market Cap Fall

Despite the dip, USDT stablecoin dominance still sits above 65% in what has become a $210 billion market. Its current market cap of $137.2 billion is approximately 2.75% off its all-time high set on Dec. 20, 2024.

Tether’s Market Cap Movement

In other news, Tether moved almost $780 million worth of Bitcoin into its corporate reserve in December, marking the firm’s largest move since March 2023.

Tether’s Regular Allocation

As part of a strategy to diversify its assets, Tether announced plans to regularly allocate up to 15% of its net realized operating profits toward purchasing Bitcoin. This move reflects the firm’s commitment to maintaining its reserve-backed stablecoin and mitigating potential risks associated with market fluctuations.

Conclusion

The retirement of Stuart Hoegner as general counsel at Tether and Bitfinex has sparked both celebration and concern among industry observers. As Michael Hilliard takes on his new role, he will face a host of challenges related to regulatory compliance and the ongoing implementation of MiCA in Europe.