Tether Might Start New Stablecoin According to CEO

Despite the growing discussions around stablecoin regulation in the United States, Tether CEO Paolo Ardoino has clarified that the company isnt overly concerned about its flagship stablecoin, USDT, potentially being banned under new legislation.

In an interview, Ardoino stated that Tether is prepared to navigate the regulatory challenges by creating a new U.S.-domiciled stablecoin that will comply with pending American laws.

Tethers Approach to U.S. Stablecoin Regulation

Tether, which operates USDT, the largest and most widely used stablecoin in the world, has long been at the center of regulatory scrutiny. As U.S. lawmakers push forward with stablecoin bills like the Senates GENIUS Act and the Houses STABLE Act, questions have arisen about whether foreign stablecoin issuers like Tether—currently based in El Salvador—would be able to comply with U.S. regulations.

In response to these concerns, Ardoino pointed out that Tether could adapt to the new regulatory environment by developing a stablecoin specifically designed for the U.S. market. He explained, “We believe that our main stablecoin is perfected for emerging markets, but we can craft a payment stablecoin that works for the U.S. We need to have two products with two different value propositions.”

This move indicates that Tether is prepared to offer a compliant solution for the U.S. market while maintaining its existing operations in emerging markets. The flexibility to create different stablecoins for different markets could help Tether navigate the shifting regulatory landscape without jeopardizing its dominance in the broader cryptocurrency market.

The Debate Over Anti-Money Laundering Provisions

A key point of contention in the ongoing stablecoin legislation is the requirement for issuers like Tether to comply with the Bank Secrecy Act, a critical anti-money laundering (AML) regulation. Both the GENIUS Act and STABLE Act propose that foreign stablecoin issuers adhere to these strict AML requirements, which some critics argue could disproportionately impact non-U.S. stablecoin issuers while favoring U.S.-based competitors.

Rep. Tom Emmer (R-MN), the House Majority Whip, has voiced his concerns over such provisions, stating that stablecoin issuers like Tether should not be forced to comply with these stringent regulations. He believes such requirements could stifle innovation and potentially drive foreign issuers out of the U.S. market.

Tether has consistently maintained that it is highly compliant with law enforcement and regulatory authorities. According to Ardoino, Tether is already in discussions with major accounting firms about conducting a full audit of its reserves, a move aimed at addressing longstanding concerns about transparency and backing for its USDT token. However, he emphasized that the Big Four accounting firms have been cautious about engaging with the novel stablecoin market.

Conclusion: Tethers Strategic Adaptation to U.S. Stablecoin Regulation

Tether‘s response to the evolving stablecoin regulatory landscape highlights the company’s adaptability and commitment to compliance. By potentially creating a U.S.-domiciled stablecoin, Tether is preparing to meet the demands of American regulators while continuing to serve global markets with its current stablecoin offering. While concerns about the regulatory environment persist, Tethers proactive approach signals its readiness to work within the system rather than retreating from it.

As stablecoin regulation continues to evolve, the actions of industry giants like Tether will likely influence the broader conversation around digital asset regulation and the future of cryptocurrency in the U.S. market.