Tether’s CEO stresses regulatory clarity and reserve stability

Paolo Ardoino, CEO of Tether (CRYPTO:USDT), addressed cryptocurrency regulations and the company’s operations at DC Fintech Week in Washington. 

During his speech, Ardoino emphasised the importance of establishing clear and practical regulations in the U.S. cryptocurrency sector. 

Despite legislative delays in the Senate, he expressed optimism about bipartisan support for a current regulatory bill but acknowledged that the upcoming election could impact its progress. 

“As a company, we favor regulations, but they should help protect customers,” Ardoino stated, underlining Tether’s stance on responsible regulation.

Ardoino also discussed Tether’s ongoing collaboration with law enforcement agencies, including the FBI and Secret Service, across 45 countries. 

While acknowledging the risks of criminal exploitation of USDT, he highlighted Tether’s active cooperation with global authorities to disrupt such activities effectively.

Regarding Tether’s financial stability, Ardoino stressed the importance of maintaining adequate reserves to manage large-scale redemptions. 

He explained that Tether’s reserves are structured to ensure liquidity to handle rapid withdrawals without destabilising the company. 

Reflecting on a massive redemption event in 2022, where Tether liquidated over 10% of its reserves, Ardoino noted that such a challenge would be difficult for many banks to navigate successfully.

At the time of writing, the Tether price was $0.9994.