In an interview, Tether CEO Paolo Ardoino issued a warning that the regulatory framework for crypto assets set by the European Union (MiCA) could pose a 'systemic risk' to the global banking system. Ardoino stated that the implementation of MiCA did not strengthen the financial system's stability but, rather, increased its vulnerability. This view stems from the MiCA regulations requiring at least 60% of stablecoin reserves to be held in bank accounts within the EU. This measure has been criticized for potentially undermining the part-reserve system of financial institutions and increasing the risk of bank runs.