Tether Engages US Lawmakers to Shape Stablecoin Regulation

Tether, the issuer of the world's largest stablecoin, USDT, is actively engaging with US lawmakers to shape the regulatory framework for stablecoins. According to Tether CEO Paolo Ardoino, the company is working closely with top legislators to ensure its voice is heard in the process.

The proposed regulations, if passed, would require Tether to undergo monthly audits by a US accounting firm and maintain one-to-one reserves with regulator-approved assets. Currently, Tether holds over $114 billion in short-term Treasury bills in its reserves, which accounts for approximately 60% of the stablecoin market share.

JPMorgan analysts suggest that if the proposed US stablecoin regulation passes, Tether might need to sell part of its Bitcoin and precious metals holdings to comply with the new rules. However, Ardoino argues that the company's operations and the regulatory process have been misunderstood by the analysts.

Three key stablecoin bills are currently making their way through Congress, each proposing different approaches to regulating digital assets. The STABLE Act, introduced by Representative Bryan Steil and Congressman French Hill, seeks to establish a regulatory framework for stablecoins with bipartisan backing. The GENIUS Act, introduced by Senator Bill Hagerty, proposes federal oversight of payment stablecoins while preserving state regulatory authority. Rep. Maxine Waters introduced a stablecoin bill focusing on consumer protection and anti-fraud measures in the crypto industry.

The Republican-controlled House and Senate are targeting April for a bill to be signed into law, indicating a sense of urgency in addressing the regulatory landscape for stablecoins.