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Stablecoin issuer Tether is actively collaborating with U.S. lawmakers to engage in discussions regarding stablecoin legislation, aiming to make its voice heard in the regulatory process while ensuring that its business is not unduly affected. To comply with the new regulations, Tether will need to meet regulatory requirements, including accepting monthly asset audits by U.S. accounting firms and maintaining a one-to-one asset backing to ensure that the stablecoin is adequately supported by funds.
Tether participates in U.S. stablecoin regulatory discussions
The stablecoin market is currently at a critical turning point. Stablecoins, as digital currencies backed by fiat currencies or other assets, have become an integral part of the cryptocurrency market, widely used in cross-border payments, decentralized finance (DeFi), and as a store of value. However, as the market for stablecoins expands, regulatory scrutiny has also increased. In particular, the issuance and management of stablecoins have gradually become focal points of discussion among policymakers in the United States.
Fox Business reporter Eleanor Terrett recently tweeted that Tether, the world’s largest stablecoin issuer, is engaging in active dialogue with U.S. lawmakers, hoping to assist in the formulation of federal-level stablecoin regulatory policies.
NEW from me: Offshore stablecoin giant @Tether_to is working with U.S. lawmakers to influence how these fiat-backed currencies are regulated in the U.S.
The issuer of the world’s largest stablecoin $USDT has been a controversial figure in U.S. crypto policy circles due to an…— Eleanor Terrett (@EleanorTerrett) February 14, 2025
Tether’s USDT stablecoin has consistently dominated the global stablecoin market and is one of the largest holders of U.S. Treasury bonds. Nevertheless, there has been considerable skepticism online regarding its transparency, particularly doubts about whether its assets can fully back the issued stablecoins. As a result, Tether is currently actively participating in the U.S. legislative process and collaborating with multiple lawmakers to propose recommendations for future stablecoin regulatory policies.
Tether CEO Paolo Ardoino revealed that the company is involved in several legislative proposals regarding stablecoins, including the “Stablecoin Transparency and Accountability Act” (STABLE Act) introduced by Republican lawmakers Bryan Steil and French Hill on February 6.
The “Stablecoin Transparency and Accountability Act” is one of the significant proposals presented in the U.S. Congress in 2025, and its primary goal is to establish a clear regulatory framework for the stablecoin market to address current concerns over the lack of transparency and to position the U.S. as a global leader in stablecoin regulation. The bill requires stablecoin issuers to meet asset backing requirements while undergoing regular audits by U.S. accounting firms.
Tether’s position: cooperating with regulations while emphasizing transparency and regulatory needs
Tether CEO Ardoino stated that although the future stablecoin regulations remain uncertain, the company will fully cooperate and ensure its voice is heard throughout the legislative process. He emphasized that Tether will not abandon its business to comply with U.S. laws; rather, it will strive to ensure that new regulations do not place excessive pressure on its operations. According to reports, to comply with the new regulations, Tether may need to provide monthly asset audit reports and ensure that each USDT token is backed by equivalent assets such as U.S. dollars or U.S. Treasury bonds.
Additionally, Tether faces criticism regarding the transparency of its assets. Although Tether has not undergone a comprehensive audit since its inception, it publishes quarterly financial assessments conducted by global accounting firms. This practice has sparked considerable controversy within the cryptocurrency community, especially concerning whether the underlying assets can fully support the issued stablecoins.
Stablecoins are playing an increasingly significant role in the global financial market, particularly regarding the demand for U.S. dollars. According to reports, Tether currently holds over $114 billion in U.S. Treasury bonds, making it one of the largest holders of U.S. government debt worldwide. This asset structure not only reinforces the global status of the U.S. dollar but also positions stablecoin issuers prominently within the global capital market.
Currently, the U.S. Congress and Senate are advancing several stablecoin bills, aiming to pass legislation before April. As the regulatory framework for stablecoins in the U.S. gradually takes shape, Tether and other stablecoin issuers will face more explicit regulatory requirements. This not only presents a significant challenge to the company’s operational model but may also bring new opportunities for the stablecoin market. However, under the shadow of regulation, the future development of stablecoins will still need to balance innovation with the demands of risk management.
Sources: Cointelegraph, Cointelegraph