Tether, the world’s largest stablecoin issuer with a market valuation exceeding $142 billion, is actively engaging with U.S. lawmakers to shape federal stablecoin regulations. According to a report by Fox Business, Tether is working closely with Representatives French Hill and Bryan Steil on the STABLE Act, introduced on February 6, while also contributing to two additional proposed stablecoin bills.
Tether’s Push for Legislative Influence
Tether CEO Paolo Ardoino emphasized the company’s commitment to ensuring its voice is heard in regulatory discussions. “We are not going to just give up and let Tether die for the sake of not adapting to U.S. legislation,” Ardoino stated. “We want our voice to be heard in the legislative process because there is still a lot of uncertainty.”
Under the proposed regulations, Tether would be required to maintain one-to-one asset collateral for its fiat-backed tokens and submit to monthly reserve audits conducted by a domestic accounting firm. This shift toward greater transparency is a crucial step in addressing concerns about the stability and security of stablecoins in the broader financial ecosystem.
Tether’s Role in Ongoing Crypto Regulation Talks
Tether’s proactive stance on regulation follows a recent meeting between leaders in the cryptocurrency industry and the Securities and Exchange Commission (SEC) to discuss sector-wide compliance issues. The Trump administration has also pushed for stablecoin issuers to relocate their operations onshore, reflecting a broader effort to bring digital assets within the scope of federal oversight.
The Federal Reserve’s Perspective on Stablecoins
Federal Reserve Governor Christopher Waller has acknowledged the role of U.S. dollar-pegged stablecoins in reinforcing the dollar’s global dominance. In a February 6 interview, Waller highlighted how stablecoins contribute to the dollar’s reach and strengthen its position as the world’s reserve currency.
Stablecoin issuers, including Tether, have increasingly used U.S. Treasuries to overcollateralize their tokens, thereby maintaining strong demand for the dollar and contributing to U.S. government debt markets. Waller expressed support for allowing both banks and non-bank institutions to issue stablecoins under state-level regulatory frameworks. However, he also cautioned about risks, including potential de-pegging events and fragmentation within the digital asset ecosystem.
As regulatory scrutiny over stablecoins intensifies, Tether’s engagement with U.S. lawmakers signals a strategic effort to align its operations with evolving legal frameworks while preserving its market position. With federal agencies and policymakers weighing the impact of stablecoins on financial stability and monetary policy, Tether’s influence in shaping upcoming legislation will be pivotal in determining the future of digital dollar-pegged assets.
