The Impact of MiCAR on the Stablecoin Market
This article explores the early effects of MiCAR on euro-pegged stablecoins using an event study and a difference-in-difference analysis. It examines the impact of MiCAR’s approval on returns, volatility, and trading volumes. Overall, returns and volatility showed no significant changes, consistent with stablecoins’ claim to maintain a stable value. Trading volumes were also largely unaffected. Larger stablecoins, however, exhibited a positive return response, which may reflect increased confidence following MiCAR’s introduction.