Tether Plans US-Only Stablecoin In Response To Trump’s Regulatory Support

As the cryptocurrency landscape in the United States undergoes significant changes under Trump’s second administration, Tether, the company behind the largest stablecoin, USDT, is considering launching a US-exclusive stablecoin.

This potential move comes in response to ongoing discussions about regulatory frameworks for digital assets, which Tether’s CEO, Paolo Ardoino, believes could encourage new entrants into the market.

Tether Eyes US Expansion Amid Regulatory Changes

In a recent interview with the Financial Times, Ardoino highlighted that Tether is actively involved in conversations regarding US regulations governing stablecoins—digital currencies pegged to fiat currencies like the dollar. 

The firm’s CEO noted that the White House recognizes stablecoins as “an important instrument for the United States,” which could pave the way for Tether to create a token specifically tailored for American users.

Currently, Tether’s stablecoin is widely traded, with approximately $144 billion in circulation, accounting for 70% of the overall stablecoin market. However, the company does not accept customers from the US, a restriction that could change if favorable regulations are established.

The backdrop for Tether’s potential expansion into the US market includes the administration of President Donald Trump, who has expressed ambitions to position the US as “the crypto capital of the planet.” Trump has called for new regulations for stablecoins to be ready by August, creating a sense of urgency in the industry.

The regulatory environment is shifting, as evidenced by the Securities and Exchange Commission (SEC) pausing or dismissing most legal actions against various cryptocurrency entities. 

Furthermore, the SEC’s Division of Corporate Finance recently clarified that stablecoins are not classified as securities, alleviating some regulatory burdens previously seen under Biden’s administration.

Legislative Support For Stablecoins

Paolo Ardoino’s optimism about entering the US market with this potential new stablecoin exclusive for US investors, is bolstered by these developments, according to the Financial Times. 

The CEO stated that if the new rules enable US domestic stablecoins to become competitive, Tether would be interested in creating a domestic stablecoin that could function effectively as a settlement currency.

As such, industry experts echo Ardoino’s sentiments about the necessity of a cohesive federal framework for stablecoins. 

Jonathan Levin, co-founder and CEO of Chainalysis, emphasized that without such a framework, it remains challenging for financial services firms and international enterprises to adopt stablecoins on a larger scale.

However, in what could be a sign of what’s to come for the stablecoin sector with positive news and progress from lawmakers in support of digital assets in the US, several bills have been introduced to further support the growth of stablecoins.

Last year, Tether reported $13 billion in profits, further demonstrating the interest in such cryptocurrencies amid broader market challenges. Circle, on the other hand, which is behind the UDSC stablecoin, is now planning to go public in the US.

Featured image from DALL-E, chart from TradingView.com