Tether Downplays U.S. Market as Stablecoin Legislation Remains Unclear

Tether Downplays U.S. Market as Stablecoin Legislation Remains Unclear

Despite notable progress on Capitol Hill toward regulating stablecoins, Tether, the world’s largest stablecoin issuer, says the U.S. remains a low priority in its global strategy.

In a recent interview with Bloomberg, Tether CEO Paolo Ardoino emphasized that while the company is monitoring U.S. legislative developments — particularly the Genius Act, a crypto-backed Senate bill — its main business focus will continue to be outside the United States.

Tether’s Global Focus Stays Firm

“We are looking at the Genius Act in a way that will allow us to be compliant,” Ardoino said. “We can be compliant while still having a strong focus on foreign markets.”

The Genius Act, which advanced in Congress on May 19, aims to create clearer guidelines for stablecoin issuers, distinguishing between foreign and domestic players. Meanwhile, the House Financial Services Committee has approved its own version of a stablecoin bill, though it has yet to be put to a full vote.

Both versions of the legislation would require stablecoin issuers to fully back their tokens with cash or highly liquid assets like short-term U.S. Treasuries. They would also place firms like Tether under anti-money-laundering (AML) frameworks and the Bank Secrecy Act (BSA).

U.S. Payments Market Already Crowded

Ardoino acknowledged that stablecoins are relevant in the U.S. market but pointed out that the country already has a robust set of payment options, including Zelle, PayPal, debit cards, credit cards, and cash. This makes the U.S. less of a strategic priority compared to other regions where access to dollar-pegged assets is more limited.

Tether’s Regulatory Journey

Tether has faced its share of regulatory scrutiny in the U.S., including a 2021 settlement with regulators over questions regarding its reserves. However, the company has since taken steps to improve its transparency, with its reserves now managed by Cantor Fitzgerald, a financial services firm once led by Howard Lutnick. Interestingly, Lutnick recently shifted ownership of Cantor Fitzgerald to his children and external investors as he took on a role in the White House.

Outlook

As U.S. lawmakers inch closer to formalizing stablecoin rules, global players like Tether are keeping a close watch — but they are not betting on the U.S. market just yet. Instead, Tether’s growth strategy remains centered on foreign markets where demand for stable, dollar-linked digital assets continues to surge.