- Tether’s CEO, Paolo Ardoino, has indicated the company’s readiness to develop a new stablecoin tailored for the U.S. market
- The initiative comes in response to impending U.S. regulations that may restrict foreign-issued stablecoins like Tether’s USDT
- The proposed stablecoin would be designed to comply with U.S. legal requirements, distinguishing it from USDT, which is primarily used in emerging markets
Paolo Ardoino, CEO of Tether, has expressed the company’s intention to create a U.S.-compliant stablecoin to navigate forthcoming regulatory landscapes. With potential legislation poised to limit the circulation of foreign stablecoins such as USDT, Ardoino aims to introduce a new product that aligns with U.S. legal standards, ensuring continued access to the American market. The comments come two months after Tether said that complying with forthcoming U.S. stablecoin regulations will be “straightforward.”
Tether Adapting to Regulatory Shifts
Tether has come under mounting scrutiny in the U.S. following promises of regulatory oversight by lawmakers ever since the collapse of the $UST stablecoin connected to the Terra platform. As a result, a raft of stablecoin bills have begun their journey into law, including the STABLE Act and the GENIUS Act.
In response to concerns that it may not meet the regulatory requirements to operate in the U.S., including audited proof of reserves, Tether said in February that it was “closely monitoring the evolution of the different U.S. stablecoin bills and also actively engaging with local regulators” and that “Adapting [to the] new requirements will be straightforward.”
What has happened since then is unclear, however, as CEO Ardoino told Decrypt that Tether might have to make more changes than anticipated:
We believe that our main stablecoin is perfected for emerging markets, but we can craft a payment stablecoin that works for the U.S.
Addressing concerns about regulatory compliance, Ardoino highlighted Tether’s ongoing efforts to enhance transparency, confirming that the company is engaging with a major accounting firm to conduct a comprehensive audit of its reserves, a move aimed at bolstering trust and meeting regulatory expectations.
For many, this is all that Tether needs to do to prove its legitimacy, but it seems that U.S. regulators may want more in order to clear the company for operation in the country.
