In an interview with the Less Noise More Signal podcast, Tether CEO Paolo Ardoino criticized the European Union's stablecoin regulatory framework, which forces stablecoin companies such as Tether to place most of their reserves (up to 60%) in uninsured bank deposits. Due to the cross-impact of high-risk loans and new cryptocurrency rules, Europe may see a wave of bank failures in the near future. Paolo Ardoino added that European regulatory regimes are designed to help eurozone banking institutions bring more liquidity, but this creates "huge systemic risks" because major European banks such as UBS will not include stablecoins in the banking system, ultimately forcing stablecoin issuers to choose smaller banks, further exacerbating the risks.