- Tether has begun working with U.S. lawmakers to shape stablecoin regulations
- The company has faced criticism for its alleged lack of transparency regarding financial audits
- Proposed legislation could require Tether to undergo full monthly audits and maintain one-to-one reserves with pre-approved assets
Tether, the issuer of the world’s largest stablecoin, has confirmed it is actively engaging with U.S. lawmakers to influence how stablecoin regulations are shaped. The company has long been a controversial player in crypto policy discussions due to concerns about its financial transparency. New legislation in Congress aims to set clear rules for stablecoin issuers, potentially requiring Tether to undergo regular audits and stricter oversight, so it is not a surprise that Tether is trying to get involved at this early stage.
Tether’s Role in the Stablecoin Market
With a market dominance of around 60% of the $230 billion stablecoin industry, Tether has become one of the world’s largest holders of U.S. debt, with over $114 billion in short-term Treasury bills in its reserves.
Despite its prominence, Tether has faced persistent criticism regarding its financial transparency, with critics arguing that the company has never undergone a full audit, instead relying on quarterly financial attestations from global accounting firm BDO. These concerns have fueled calls for stricter oversight, particularly as Congress moves closer to passing stablecoin-specific regulations.
According to Fox Business journalist Eleanor Terrett, Tether CEO Paolo Ardoino has confirmed that the company is actively engaging with lawmakers to ensure its perspective is considered with regard to any future legislation:
We are going to work within the regulatory framework, and we are going to try to advise on every single one of these field proposals to make sure that our voice is heard. We are not going to just throw in the towel and let Tether die just for the sake of not adapting to U.S. legislation. There is still a lot of uncertainty over what’s actually going to happen, and we want our voice to be heard in the legislative process.
Congressional Support and Regulatory Implications
Representative Bryan Steil, chairman of the House Financial Services Committee’s Digital Assets Subcommittee, confirmed to Terrett that Tether has been actively participating in discussions on the STABLE Act, a draft bill introduced last week. Additional stablecoin bills have also been introduced by Senator Bill Hagerty and Congresswoman Maxine Waters, highlighting bipartisan efforts to establish a regulatory framework for stablecoins.
If passed, these regulations could significantly impact Tether’s operations; the company may be required to submit to full monthly audits by a U.S. accounting firm and maintain one-to-one reserves backed by pre-approved assets. However, Tether recently stated that compliance with any future stablecoin legislation would be “straightforward.” Lawmakers aim to finalize and pass a stablecoin bill by April, with the goal of securing President Trump’s signature.
