PANews reported on May 3rd that according to CoinDesk, Tether CEO Paolo Ardoino criticized the EU's stablecoin regulatory framework in an interview with the Less Noise More Signal podcast, which forces stablecoin companies such as Tether to store most of their reserves (up to 60%) in uninsured bank deposits. Due to the cross-influence of high-risk loans and new cryptocurrency rules, Europe may see a wave of bank failures in the near future. Paolo Ardoino added that the European regulatory system is designed to help banking institutions in the eurozone to bring more liquidity, but this has created "huge systemic risks" because large European banks such as UBS will not incorporate stablecoins into the banking system, ultimately forcing stablecoin issuers to choose smaller banks, further exacerbating the risks.