Crypto: Tether cooperates with American legislators to shape stablecoins

The regulations around Stablecoins are no longer a distant threat for cryptos issuers. They are now essential as an essential reality. In this uncertain climate, Tether, the sector leader with a capitalization that exceeds $ 142 billion, has chosen not to remain a spectator. Rather than opposing American legislators head on, the company seeks to weigh in the regulatory process. A strategic choice that could redefine the future of stablecoins and the entire crypto market in the United States.

Tether enters the legislative arena

For years, Tether has been evolving in a regulatory gray area, and juggling between a lack of criticized transparency and a massive adoption of its USDT as a global reference. Faced with the rise in legislative pressure in the United States, the company has decided to actively participate in the discussions on the future regulation of Stablecoins. According to information reported by Fox Business, Tether collaborates with American legislators, in particular representatives Bryan Steil and French Hill, to influence the Stable Acta key law in sector regulation.

The CEO of Tether, Paolo Ardoino, wanted to clarify the position of his business: “We do not intend to abandon the American market. There are still a lot of uncertainty about what will happen, and we want our voice to be heard in this legislative process ”. The objective of Tether is therefore clear: not to let regulators define the rules of the game alone, but rather shape a framework that allows the company to remain competitive on the American market while meeting new legal requirements.

Strategic issues and risks to Tether

If Tether's involvement in legislative discussions testifies to a change of posture, it also informs the challenges to come for the company. Indeed, complying with American requirements will not be without consequences. One of the flagship measures envisaged by the stable Act imposes monthly audits from the Crypto reserves of Tether by an accounting firm based in the United States, a major constraint for a company regularly pointed out on the transparency of its reserves.

Beyond the constraints, the question of competition between stablecoins emitters arises. Christopher Waller, Governor of the Federal Reserve, believes that the Stablecoins “will expand the scope of the US dollar worldwide and strengthen its reserve currency status”. Such a vision potentially opens the door to the emission of stablecoins backed by the dollar by traditional banking institutions, which thus puts the crypto Tether in the face of unprecedented competition. If the big banks enter the stablecoins race, the Tether monopoly could be questioned, especially if institutional investors favor more regulated alternatives.

Tether's future in the United States will depend on his ability to comply with new rules without losing his competitive advantage. On the one hand, playing the game of Crypto regulation could offer it unprecedented legitimacy, which would reassure institutions and regulators. On the other hand, the opening of the market to traditional banking players could weaken its grip on the crypto ecosystem. The showdown between regulators and Tether has only just begun, and its outcome will determine the future of the USDT, but also that of the entire Stablecoins market.