Yigit Taha OZTURK 
Tether, with a market capitalization of over $142 billion, is reportedly in talks with U.S. lawmakers to help craft federal stablecoin regulatory policies.
According to Fox Business reporter Eleanor Terrett, Tether has been collaborating with Bryan Steil, chairman of the House Financial Services Committee’s Subcommittee on Digital Assets, and French Hill regarding the STABLE Act, introduced on February 6.
Additionally, Tether CEO Paolo Ardoino stated that the company is also providing input on two other stablecoin bills introduced by other lawmakers. Ardoino commented:
“We are not going to just throw in the towel and let Tether die just for the sake of not adapting to U.S. 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.”
Can Tether Adapt to U.S. Regulations?
If Tether agrees to fully comply with U.S. regulations, it will be required to:
- Conduct monthly reserve audits via a U.S.-based accounting firm.
- Maintain 1:1 asset collateral for its tokenized fiat equivalents.
These changes in the regulatory landscape come at a time when executives in the crypto industry are meeting with the Securities and Exchange Commission (SEC) to discuss issues affecting the sector. Additionally, the Trump administration is calling for stablecoins to be brought onshore to strengthen the U.S. dollar’s global dominance.
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Federal Reserve and Stablecoins
In a February 6 interview, Federal Reserve Governor Christopher Waller stated that U.S.-pegged stablecoins would help broaden the reach of the dollar and make it an even more dominant global reserve currency:
“Stablecoins will broaden the reach of the dollar across the globe and make it even more of a reserve currency than it is now.”
Tether and other stablecoin issuers are among the largest buyers of U.S. government debt. These firms use government securities to overcollateralize their fiat-backed tokens, driving demand for the U.S. dollar and helping preserve its status as the global reserve currency.
However, Waller also expressed concerns about risks associated with stablecoins, such as:
- De-pegging events, where stablecoins may lose their fixed value against the dollar.
- The fragmentation of the stablecoin ecosystem, with multiple stablecoins operating in parallel and creating systemic risks.
Nonetheless, Waller emphasized that both banks and non-banks should be allowed to issue their own stablecoins and work with state regulators to ensure compliance with existing regulations.
Tether is actively working to ensure its compliance with U.S. regulations, allowing it to maintain its strong position in the stablecoin market. While the outcome remains uncertain, its influence in the crypto ecosystem is likely to continue.
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