Tether maintains that the United States is a low priority in the face of ambiguous stablecoin regulations despite progress on Capitol Hill
Even as U.S. legislators progress on new regulations for stablecoins, the issuer has stated that its primary focus will remain outside the United States.
In an interview with Bloomberg, Paolo Ardoino, CEO of Tether, stated that the company was focused on observing “how the Genius Act is distinguishing between foreign issuers and domestic issuers.” He also said Tether’s primary interest would remain “outside the U.S.”
“We are looking at the Genius Act in a way that will allow us to be compliant. We can be compliant while still having a strong focus on foreign markets.”
Paolo Ardoino
The Genius Act, a Senate bill garnered crypto industry support, made significant progress in Congress on Monday, May 19. The House Financial Services Committee has approved its version of a stablecoin measure, although it has not yet been subject to a full vote.
The entire backing of tokens with cash or safe assets, such as short-term U.S. Treasuries, would be required by issuers of stablecoin bills in both chambers. The regulations would also subject stablecoin firms to the Bank Secrecy Act and anti-money laundering regulations.
Arduino observed that stablecoins are significant in the United States, but the country already has many payment options, including Zelle, PayPal, debit cards, credit cards, and cash.
Although Tether has previously been subject to regulatory scrutiny in the United States and reached a settlement with regulators in 2021, the firm’s reserves are currently overseen by Cantor Fitzgerald, a financial services firm that Howard Lutnick previously led.
Upon his appointment to the White House, Lutnick recently transferred ownership to his children and external investors.
