Tether Plans to Launch US-Based Stablecoin: A Shift in Strategy
Tether, the premier stablecoin issuer by market capitalization, is gearing up to introduce a US-based stablecoin by late 2025 or early 2026. This upcoming move signals a strategic redirection for the company, aiming for tighter alignment with the regulations in the United States.
While Tether’s USDT token has already established its dominance in the global market, the new dollar-pegged stablecoin intends to adhere specifically to US regulatory standards. CEO Paolo Ardoino disclosed this initiative during an interview at the Token2049 conference in Dubai, indicating that the launch timeline will be finalized once ongoing US legislation is addressed.
Tether’s Lobbying Efforts in Washington
Tether’s domestic focus coincides with Ardoino’s intensified lobbying efforts in Washington, DC. Reports suggest his recent activities involve confidential discussions with legislators, including a lunch meeting with Republican Senator Bill Hagerty. Tether is proactively supporting legislation like the GOP-backed GENIUS Act, which aims to facilitate cooperation between foreign issuers and US law enforcement.
Ardoino emphasized Tether’s collaborative efforts with US agencies, distinguishing the company as a financial entity that engages law enforcement at an unparalleled level. This shift in strategy reflects Tether’s commitment to transparency and regulatory compliance, especially after facing scrutiny regarding its reserve disclosures in the past.
The Shift Towards Transparency
Tether remains headquartered in El Salvador, yet its ambition to roll out a domestically compliant stablecoin underscores its evolving regulatory stance. The upcoming token will be distinctly separate from the existing USDT product, crafted to meet specific US legal and financial requirements.
Reserve Management and Oversight
Tether manages substantial reserves, including billions in US Treasuries through its partnership with Cantor Fitzgerald, a well-established firm on Wall Street. A recent attestation report revealed that Tether holds nearly $120 billion in Treasuries, though its excess reserves dropped to $5.6 billion from over $7 billion late last year. This connection with Cantor Fitzgerald has raised concerns regarding potential conflicts of interest, given that the firm is led by the sons of US Commerce Secretary Howard Lutnick.
Ardoino addressed these concerns, asserting that appropriate measures are in place to mitigate any conflicts, and he emphasized that communication with the secretary is restricted. He reiterated Tether’s sound capital position, noting a substantial excess equity cushion, and urged traditional financial entities to adopt a similar robust model.
Following a significant settlement in 2021 for past allegations regarding reserve misrepresentations, Tether has increased its transparency efforts, rolling out regular attestation reports.
Intensifying Competition in the Stablecoin Market
As Tether prepares to delve into the US stablecoin space, it faces growing competition amidst heightened political scrutiny. Recently, World Liberty Financial, backed by the Trump family, announced its plans to launch a dollar-based token, further elevating the competitive landscape for gaining regulatory approval and market share.
Amid these developments, the GENIUS Act and other legislative proposals could pave the way for clearer compliance guidelines for stablecoin issuers. Tether’s ability to influence policy in this rapidly evolving market could be crucial as regulatory scrutiny is expected to intensify leading up to the 2026 elections.
Tether’s initiative to introduce a US-regulated stablecoin transcends mere technical advancements; it also serves as a powerful political statement. As discussions around cryptocurrency regulations gather momentum in Washington, the company’s future may hinge more on its legal alignment with US financial policies than on its current market dominance.
