Tether Eyes U.S. Launch of New Dollar-Pegged Stablecoin Amid Regulatory Push
Tether plans to launch a U.S.-based dollar-pegged stablecoin by late 2024, as CEO Paolo Ardoino increases lobbying efforts amid rising pro-crypto sentiment in Washington.
Tether, the world’s leading stablecoin issuer, is preparing to introduce a U.S.-based, dollar-pegged stablecoin as early as this year, according to CEO Paolo Ardoino in an interview with CNBC.
This strategic move aligns with Tether’s growing presence in Washington, D.C., where Ardoino has been actively engaging with policymakers to help shape favorable crypto regulations. These efforts are gaining momentum as pro-crypto sentiment increases, particularly among allies of former President Donald Trump.
Speaking at the Token2049 conference in Dubai, Ardoino clarified that this upcoming U.S. stablecoin would be a standalone product, distinct from Tether’s current international offerings like USDT.
He mentioned the launch could take place by the end of 2024 or in early 2025, depending on how pending regulatory legislation unfolds.
Tether Ramps Up Influence in Washington
As part of its U.S. expansion strategy, Ardoino has been meeting with lawmakers and key stakeholders, including a Capitol Hill luncheon with Senator Bill Hagerty. These meetings appear to align with Republican-backed initiatives like the GENIUS Act, which aims to ease restrictions for compliant foreign stablecoin providers operating in the U.S.
Although Tether is based in El Salvador, it has faced scrutiny from regulators in the past. In 2021, the company paid $18.5 million to settle allegations with the New York Attorney General over misleading claims about its reserves.
Today, Tether claims to hold nearly $120 billion in U.S. Treasury securities, managed by financial services firm Cantor Fitzgerald. Its most recent Q1 audit revealed $5.6 billion in excess reserves, a decrease from $7 billion reported at the end of last year.
A Brewing Battle for Stablecoin Dominance
Tether’s planned U.S. launch arrives at a time of increasing competition. Eric Trump and Donald Trump Jr. are reportedly working on a dollar-backed stablecoin tied to their father’s political brand. This development could signal the beginning of a high-stakes race for dominance in the U.S. stablecoin market.
