Tether Eyes US-Compliant Stablecoin Amid Regulatory Uncertainty

Tether, the leading stablecoin issuer, is considering introducing a new stablecoin tailored for the U.S. market if upcoming regulations force its flagship product, USDT, out of the country.

Paolo Ardoino, the company’s CEO, has hinted at this contingency plan, emphasizing that the global operations of Tether are unlikely to be significantly affected despite the regulatory uncertainties.

During a recent discussion, Ardoino addressed the speculation surrounding Tether’s potential exit from the U.S. He explained that while the company’s main stablecoin is optimized for emerging markets, they are exploring the possibility of creating a separate payments-focused stablecoin specifically for U.S. compliance. This move would help maintain a presence in the American market even if regulations become more stringent.

In the U.S., lawmakers are pushing for tighter control over stablecoins, particularly those issued abroad. Two proposed pieces of legislation, the STABLE Act and the GENIUS Act, aim to impose rigorous standards, including compliance with anti-money laundering protocols, regular audits, and adherence to the Bank Secrecy Act. Given Tether’s registration in El Salvador, these laws would directly impact the company’s operations if enacted.

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Transparency issues have long been a point of contention for Tether, with critics questioning whether the company has ever completed a full audit of its reserves. Ardoino responded to these concerns by revealing that Tether is currently in talks with some of the world’s leading accounting firms to address this issue, aiming to enhance credibility.

Amid rumors suggesting that Tether might completely withdraw from the U.S. to avoid regulatory challenges, Ardoino dismissed such speculation as unfounded. He argued that these claims stem from competitors trying to discredit the company. To reinforce Tether’s continued commitment to the U.S. market, Ardoino spoke from Cantor Fitzgerald’s New York office, where the company holds a portion of its U.S. Treasury reserves.

Alexander Stefanov