Tether May Launch New Stablecoin If US Regulators Push Out USDT, Says CEO

Stablecoin Legislation: Tether CEO Unfazed by US Regulatory Scrutiny

Tether’s Response to US Stablecoin Legislation

Tether, the largest and most prominent stablecoin issuer, has expressed confidence in its ability to navigate the uncertain regulatory landscape in the United States. Despite the potential impact of new stablecoin legislation on foreign issuers, Tether CEO Paolo Ardoino remains optimistic about the company’s prospects.

Tether’s Plans for Compliance

Ardoino stated that Tether is considering creating a new, U.S.-domiciled stablecoin to comply with pending American stablecoin laws. This move would allow the company to maintain its presence in the U.S. market while adhering to the required regulations. The new stablecoin would cater to the unique needs of the U.S. market, while Tether’s flagship stablecoin, USDT, would continue to serve emerging markets.

Tether’s Compliance Record

Ardoino emphasized that Tether has a strong track record of compliance with anti-money laundering (AML) and anti-terrorism financing (ATF) regulations. The company has cooperated fully with law enforcement agencies and has been in discussions with multiple "Big Four" accounting firms to conduct a full audit. However, these firms have been cautious due to the novel nature of the stablecoin market.

Competitors’ Fears

Ardoino dismissed speculation that Tether would exit the U.S. market due to the new regulations, labeling it as a desperate attempt by competitors to undermine the company’s success. He claimed that Tether’s competitors had bet heavily on the company’s withdrawal from the U.S. market, but this bet has not paid off.

USDT’s Future in the U.S.

Despite the uncertainty surrounding the new legislation, Ardoino expressed optimism that USDT would remain listed on U.S. secondary markets. He believes that access to USDT globally is crucial for remittances, and the company is exploring ways to ensure its continued availability in the U.S.

Global Expansion

Ardoino emphasized that Tether is investing in multiple European companies launching grassroots dollar- and euro-backed stablecoins compliant with EU regulations. This move demonstrates the company’s commitment to adapting to changing regulatory environments and expanding its presence in new markets.

Future Scenarios

In the long term, Ardoino envisions a future where USDT is no longer a major player in either the United States or Europe. This scenario would likely be driven by the emergence of new, compliant stablecoins that cater to the specific needs of each region.

Conclusion

Tether’s response to the new stablecoin legislation in the United States is a testament to the company’s adaptability and resilience. Despite the challenges posed by the regulations, Ardoino remains confident in Tether’s ability to navigate the changing landscape and maintain its position as a leading stablecoin issuer.

FAQs

Q: What is Tether’s response to the new stablecoin legislation in the United States?

A: Tether’s CEO, Paolo Ardoino, remains optimistic about the company’s prospects in the U.S. market, despite the potential impact of the new regulations.

Q: Is Tether considering creating a new, U.S.-domiciled stablecoin?

A: Yes, Tether is considering creating a new stablecoin to comply with pending American stablecoin laws, which would cater to the unique needs of the U.S. market.

Q: What is Tether’s compliance record with AML and ATF regulations?

A: Tether has a strong track record of compliance with AML and ATF regulations and has cooperated fully with law enforcement agencies.

Q: Will Tether exit the U.S. market due to the new regulations?

A: No, Ardoino dismissed speculation that Tether would exit the U.S. market, labeling it as a desperate attempt by competitors to undermine the company’s success.

Q: What is Tether’s future in the U.S. market?

A: Ardoino expressed optimism that USDT would remain listed on U.S. secondary markets, emphasizing the importance of access to USDT globally for remittances.

Q: Is Tether expanding its presence in Europe?

A: Yes, Tether is investing in multiple European companies launching grassroots dollar- and euro-backed stablecoins compliant with EU regulations.