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Tether (USDT), the world’s leading stablecoin issuer with a market cap of $137 billion, is taking a cautious approach towards expanding into the US market, waiting for clearer regulatory guidelines. In an interview with Bloomberg TV on January 16, Tether CEO Paolo Ardoino stated that any move into the US would be contingent on the evolving regulatory framework under the incoming Trump administration.
President-elect Donald Trump is expected to sign an executive order shortly after his inauguration on January 20, designating cryptocurrency as a national priority. Ardoino expressed optimism about this development, noting that it would present a “great opportunity” to assess how the US crypto environment will evolve. Despite this, Tether’s CEO has previously criticized the US for its slow pace in adopting comprehensive crypto regulation, calling it “the first time in history that [he sees] the US dropping the ball.”
Tether’s cautious stance stems from its past challenges in the US, notably the 2021 settlement with US authorities for $41 million over reserve misstatements. As part of its efforts to regain trust and influence, Tether has been ramping up its lobbying in the region. In September 2023, the company hired former PayPal executive Jesse Spiro to head government relations, reinforcing its commitment to establishing a solid foothold in the US.
Stablecoin regulation in the US is expected to accelerate under the new administration. Proposals by Senators Cynthia Lummis and Kirsten Gillibrand aim to create a clear legal framework, potentially benefiting major players like Tether. Meanwhile, Tether’s withdrawal of its euro-pegged EURt stablecoin in response to Europe’s new MiCA regulations signals the company’s adaptability to global regulatory shifts.
The stablecoin market saw impressive growth in 2024, with Tether’s profits soaring to $7.7 billion by Q3, nearing its $10 billion forecast. As the stablecoin market cap exceeded $214 billion, Tether and its competitor Circle’s USDC collectively dominate 86% of the market, reflecting the growing reliance on stablecoins in decentralized finance (DeFi).
As Tether eyes potential US expansion, its ongoing efforts to navigate regulatory challenges and embrace global opportunities signal the company’s resilience in an ever-evolving market.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
I’m a crypto enthusiast with a background in finance. I’m fascinated by the potential of crypto to disrupt traditional financial systems. I’m always on the lookout for new and innovative projects in the space. I believe that crypto has the potential to create a more equitable and inclusive financial system.
