What Happened?
Stablecoin issuer Tether is actively collaborating with U.S. Congress members to engage in legislative discussions regarding stablecoins, aiming to have a voice in the regulatory process while ensuring that its business is not overly affected. To comply with new regulations, Tether will need to meet regulatory requirements, including accepting monthly asset audits by U.S. accounting firms and maintaining one-to-one asset backing to ensure that the stablecoin has sufficient financial support.
Stablecoin issuer Tether participates in U.S. stablecoin regulatory discussions
The development of the stablecoin market is currently at a critical turning point. As a digital currency backed by fiat currencies or other assets, stablecoins have become an essential part of the cryptocurrency market and are widely used in areas such as cross-border payments, decentralized finance (DeFi), and as a store of value. However, as the scale of the stablecoin market expands, scrutiny from regulatory authorities has also increased. In the U.S., the issuance and management of stablecoins have gradually become a focal point for policymakers. 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 formulating 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 also one of the largest holders of U.S. Treasury bonds worldwide. Despite this, many users online have raised questions about its transparency, particularly regarding whether its assets can fully support the issued stablecoins. Due to these concerns, Tether is currently actively participating in the U.S. legislative process and collaborating with several Congress members to propose recommendations for future stablecoin regulatory policies. Tether CEO Paolo Ardoino revealed that the company is involved in several legislative proposals concerning stablecoins, including the “Stablecoin Transparency and Accountability Act” (STABLE Act), introduced by Republican Congress members Bryan Steil and French Hill on February 6.
The STABLE Act is one of the significant proposals introduced in the U.S. Congress in 2025, with the primary aim of establishing a clear regulatory framework for the stablecoin market to address current concerns over the lack of transparency surrounding stablecoins, allowing the U.S. to maintain a leading position in global stablecoin regulation. Among its requirements, the act mandates that stablecoin issuers must comply with asset backing requirements while undergoing regular audits conducted by U.S. accounting firms.
Tether’s Position: Compliance with Regulations While Emphasizing Transparency and Regulatory Needs
Tether CEO Ardoino stated that although future stablecoin regulations remain uncertain, the company will fully cooperate and ensure its voice is heard during the legislative process. He emphasized that Tether will not abandon its business to adapt to U.S. laws but will strive to ensure that new regulations do not impose excessive pressure on its operations. According to reports, to comply with new regulations, Tether may need to provide monthly asset audit reports and ensure that each USDT token is backed by an equivalent amount of U.S. dollars or U.S. Treasury bonds.
Additionally, Tether faces criticism regarding the transparency of its assets. Although Tether has not undergone a complete audit since its establishment, it publicly releases quarterly financial assessments conducted by global accounting firms. This practice has sparked considerable controversy within the cryptocurrency community, particularly regarding whether the underlying assets can fully support the issued stablecoins.
Stablecoins are playing an increasingly important 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 globally. This asset structure not only strengthens the global position of the U.S. dollar but also places stablecoin issuers in a significant position within global capital markets.
Currently, the U.S. Congress and Senate are advancing multiple stablecoin bills, with the goal of passing legislation by April. As the U.S. regulatory framework for stablecoins gradually takes shape, Tether and other stablecoin issuers will face clearer regulatory requirements. This poses a significant challenge to the company’s operating model but may also present new opportunities for the stablecoin market. However, in the shadow of regulation, the future development of stablecoins will still need to observe how to balance innovation with the need for risk management.
References: Cointelegraph, Cointelegraph