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CryptoIntelligence 2025-02-16 17:18:00

Tether Collaborates with U.S. Lawmakers on Stablecoin Regulation

Tether, the world’s largest stablecoin issuer, has been in active discussions with U.S. lawmakers to help shape regulations for stablecoins. These talks are crucial as the U.S. government seeks to implement clearer policies on stablecoins, with Tether at the forefront of the conversation. Tether has been working closely with Congressmen Bryan Steil and French Hill, the co-authors of the STABLE Act introduced in early February. The company’s CEO, Paolo Ardoino, confirmed that Tether aims to provide input on several other stablecoin-related bills currently under review. “We are not going to just throw in the towel and let Tether die just for the sake of not adapting to US legislation. But there is still a lot of uncertainty over what’s actually going to happen, and we want our voice to be heard in the legislative process,” Ardoino stated. The STABLE Act, a legislative proposal, is designed to provide a comprehensive framework for stablecoin issuers, requiring them to maintain full collateral backing for their tokens and submit to monthly audits by a U.S.-based accounting firm. This regulatory push reflects growing concerns over the stability of stablecoins, particularly in light of their rapid adoption and integration into the broader financial system. Tether’s proactive involvement in the regulatory process highlights the company’s desire to ensure compliance while continuing to operate in the U.S. market. The company’s approach comes at a time when the Securities and Exchange Commission (SEC) and other government agencies are closely scrutinizing the crypto sector. Tether’s cooperation could help set a precedent for how stablecoins will be regulated moving forward, especially as the global use of stablecoins continues to rise. Moreover, the Federal Reserve has expressed interest in stablecoins as a means to broaden the reach of the U.S. dollar, suggesting that stablecoin adoption could further cement the dollar’s position as the world’s dominant reserve currency.