Tether CEO Paolo Ardoino has indicated that Tether may introduce a new stablecoin if US regulators restrict the circulation of USDT. Ardoino stated that Tether could create a U.S.-based stablecoin compliant with American regulations. This move would cater to the U.S. market while maintaining Tether’s focus on emerging markets with USDT. Stablecoins, pegged to the U.S. dollar, enable cryptocurrency traders to enter and exit positions without directly accessing dollars. Pending stablecoin legislation in the U.S., such as the House’s STABLE Act and the Senate’s GENIUS Act, would require foreign issuers like Tether to adhere to stringent anti-money laundering requirements and undergo rigorous audits. Despite criticism and doubts about Tether’s reserves, Ardoino claims the company has high compliance standards and is in discussions with major accounting firms for a full audit. He dismisses theories suggesting Tether would avoid U.S. regulations as desperate tactics from competitors. Ardoino remains optimistic about USDT’s continued listing on U.S. secondary markets and its global importance for remittances. While neither bill explicitly bans USDT trade on non-custodial DeFi exchanges, Tether’s business has faced challenges in certain markets due to regional regulations. For instance, Binance delisted USDT from its European sites due to non-compliance with EU requirements. Tether is investing in European companies launching compliant stablecoins and envisions a future where USDT is not a dominant player in the U.S. or Europe.
— new from Decrypt
