Tether Engages SEC to Boost Stablecoin Regulations

Tether, the issuer of the world's largest stablecoin, USDT, is actively engaging with the U.S. Securities and Exchange Commission (SEC) to foster a more favorable regulatory environment for stablecoins. This development comes as the crypto industry seeks to enhance its standing in the U.S. market.
Fox Business reported that Tether is collaborating with members of Congress, such as Representative Bryan Steil, to streamline regulations for stablecoins. The Subcommittee on Digital Assets, under the House Financial Services Committee, is expected to oversee improvements to the Stable Act, as indicated by various sources. This news follows recent discussions around two other bills related to cryptocurrency transactions.
Tether's role in this process is multifaceted. The company is working with regulatory bodies to create a supportive trading environment for the cryptocurrency industry. Tether will undergo reserve audits and maintain head-to-head asset collateral for its tokenized fiat equivalents. Additionally, Tether is engaging with the SEC to explore ways to promote stablecoins.
In a recent interview, Federal Reserve Governor Christopher Waller expressed his support for stablecoins, stating that they could serve as an effective tool to strengthen the U.S. dollar's position as a reserve currency. Around the world, stablecoin issuers like Tether and Grayscale have invested significantly in U.S. government debt, using these securities as collateral for their fiat tokens. This strategy helps to bolster the dollar's status as a genuine standard in global capital market transactions.

Comments
No comments yet