- Tether plans a U.S.-specific stablecoin to comply with pending bills, while maintaining USDT’s dominance in emerging markets with high inflation and remittance needs.
- STABLE and GENIUS Acts demand audits, AML controls; Tether claims existing compliance, negotiates Big Four audits despite sector hesitancy and regulatory pressures.
Tether, the issuer of the world’s largest stablecoin, USDT, intends to launch a new dollar-pegged token designed specifically for the U.S. market. CEO Paolo Ardoino disclosed the strategy in response to pending stablecoin legislation in Congress, which could impose stricter rules on foreign issuers.
Two bills, the STABLE Act and GENIUS Act, are advancing in Congress. Both would require stablecoin issuers to adhere to U.S. banking standards, including anti-money laundering protocols, reserve audits, and cooperation with regulators.
Tether, based in El Salvador, argues its existing practices already meet high compliance standards. Ardoino noted the company is in talks with “Big Four” audit firms to review its reserves, though auditors remain hesitant due to the sector’s nascent nature.
Interview today at NYSE TVhttps://t.co/DiaCf43bmO
— Paolo Ardoino 🤖 (@paoloardoino) April 4, 2025
Rather than overhaul USDT, Tether will create a separate stablecoin for U.S. users. Ardoino emphasized that USDT will continue serving emerging economies, where it functions as a tool for payments, savings, and remittances in regions facing inflation or financial restrictions. “We need two products with distinct value propositions”. The decision follows recent SEC guidance clarifying that stablecoins backed by cash equivalents won’t be classified as securities, easing compliance burdens for compliant issuers.
Critics argue Tether could be excluded from the U.S. under proposed laws, particularly the House version, which bars non-compliant stablecoins from being listed on custodial platforms like Coinbase after a two-year grace period. Ardoino dismissed these claims as “desperation” from competitors. Neither bill explicitly bans decentralized platforms like Uniswap from hosting USDT, leaving a potential loophole for U.S. users.
In Europe, regulatory pressures have already prompted changes. Binance recently delisted USDT for European users to comply with the bloc’s MiCA framework. Tether has invested in euro-backed stablecoins to align with regional rules but plans to limit USDT’s role in regulated markets long-term. This signals a strategic pivot toward jurisdictions with lighter oversight, where stablecoins face fewer operational constraints.
The SEC just hit Tether’s hopes of remaining available in the US.
The SEC announced guidelines of when a stablecoin is not a security. This is critical as a security is regulated by the SEC and must be registered via a prospectus to be legally offered in the US.
The SEC… pic.twitter.com/dnknfcQppu
— Novacula Occami (@OccamiCrypto) April 4, 2025
The company’s U.S. strategy hinges on Congress’s final bill language. If passed, foreign issuers like Tether must comply within 180 days or exit the market. By launching a parallel stablecoin, Tether aims to retain its $110 billion market presence globally while navigating tightening rules in major economies.
The approach mirrors efforts by rivals like Circle, which tailored its USDC for regulatory acceptance but now faces competition from PayPal’s PYUSD and upcoming bank-issued tokens.
