Stablecoin giant Tether is working closely with U.S. lawmakers to influence the regulatory framework surrounding fiat-backed digital currencies in the country.
Tether, the issuer of the world's largest stablecoin USDT, has been a controversial figure in U.S. cryptocurrency policy discussions, largely due to concerns over transparency.
Critics have long argued that Tether has never undergone a full audit, relying instead on quarterly assessments conducted by global accounting firm BDO. Despite those concerns, Tether dominates the stablecoin market, accounting for about 60% of the $230 billion industry. The company also has a major role in global financial markets, holding more than $114 billion in short-term U.S. Treasury bonds.
With Congress actively working to create a regulatory framework for stablecoins, Tether CEO Paolo Ardoino confirmed that the company is currently in direct contact with top lawmakers to help shape the upcoming legislation.
“We will work within the regulatory framework and try to make recommendations on each of these proposals to ensure our voices are heard,” Ardoino said, referring to the three stablecoin bills introduced in the House and Senate last week. He also emphasized that Tether is committed to compliance, regardless of the final form of the legislation.
“We’re not going to throw in the towel and let Tether die just for the sake of not complying with U.S. legislation,” Ardoino said. “But there’s still a lot of uncertainty about what’s really going to happen, and we want our voices heard in the legislative process.”
Congressman Bryan Steil, Chairman of the Digital Assets Subcommittee of the House Financial Services Committee, confirmed to Fox Business that Tether is involved in discussions regarding the STABLE Act, a bill he introduced alongside Congressman French Hill. In addition to that legislation, two other stablecoin bills were introduced last week by Republican Senator Bill Hagerty and Democratic Congresswoman Maxine Waters.
The GOP-controlled House and Senate are pushing for a final bill to be signed by President Trump as early as April. If enacted, the regulations would require Tether to undergo a full monthly audit by a U.S.-based accounting firm and maintain a one-to-one ratio of its reserves to pre-approved assets.
*This is not investment advice.
