Tether Collaborates with U.S. Legislators to Establish Federal Regulations for Stablecoins

Tether, the leading stablecoin issuer globally, is actively engaging with U.S. legislators to help shape federal regulations for the stablecoin industry.

According to Fox Enterprise reporter Eleanor Terrett, the company has been in talks with Representatives Bryan Steil and French Hill, who are pivotal in the STABLE Act introduced on February 6.

Tether CEO Paolo Ardoino has reportedly indicated that the company intends to contribute to two additional stablecoin bills proposed by other lawmakers.

“We’re not going to simply give up and allow Tether to fail just to avoid adapting to U.S. regulations. However, there remains considerable uncertainty regarding what will actually transpire, and we want our perspective to be acknowledged in the legislative process.”

Tether Confronts U.S. Compliance Challenges Amid Regulatory Oversight

Adhering to U.S. regulations would necessitate Tether to maintain a one-to-one asset backing for its tokenized fiat equivalents and perform monthly reserve audits through a U.S.-based accounting firm, Terrett reported.

Tether’s participation in the regulatory discourse follows recent conversations between cryptocurrency industry leaders and the Securities and Exchange Commission (SEC) regarding broader regulatory issues.

The Trump administration has also advocated for stablecoin issuers to establish operations within the United States.

NEW from me: Offshore stablecoin giant @Tether_to is collaborating 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 contentious figure in U.S. crypto policy discussions due to an…

— Eleanor Terrett (@EleanorTerrett) February 14, 2025

Federal Reserve Governor Christopher Waller recently commented on stablecoins, suggesting that U.S. dollar-pegged digital assets could enhance the dollar’s global supremacy.

“Stablecoins will extend the reach of the dollar worldwide and make it an even more significant reserve currency than it is currently,” Waller stated in a February 6 interview.

Stablecoin issuers have become important purchasers of U.S. government debt, utilizing Treasury securities to overcollateralize their tokens and sustain dollar demand in international markets.

However, Waller warned about potential risks, including de-pegging incidents and the fragmentation of the stablecoin market, advocating for a balance between innovation and regulatory protections.

Stablecoins Are Crucial to the Financial Ecosystem

Waller asserted that stablecoins already play a crucial role in the financial ecosystem.

They provide a stable store of value for cryptocurrency traders, facilitate access to U.S. dollars in high-inflation countries, enable faster cross-border payments, and have demonstrated early but promising applications in retail transactions.

Earlier this month, while speaking at the Atlantic Council, Waller referred to stablecoins as “synthetic dollars,” comparing them to commercial bank money and emphasizing their ability to create new payment opportunities.

He noted that if stablecoins can promote competition, enhance financial inclusion, lower transaction costs, and make payments quicker and more efficient, they should be welcomed.

More recently, Federal Reserve Chair Jerome Powell confirmed the central bank’s support for developing a regulatory framework for stablecoins during a Senate hearing on February 11.

Powell stated that the Federal Reserve endorses the establishment of a regulatory framework for stablecoins, highlighting the importance of protecting consumers and savers.

He acknowledged that the future of stablecoins remains uncertain but noted their potential applications for both consumers and businesses.

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