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Reportedly, Tether, a stablecoin issuer, is in discussions with US congressional representatives to assist in the development of federal stablecoin regulatory laws.
Fox Business reporter Eleanor Terrett reports that Tether has been collaborating on the STABLE Act, which was sponsored by French Hill and Representative Bryan Steil on February 6, under the oversight of the House Financial Committee’s Subcommittee on Digital Assets headed by Steil.
🚨NEW from me: Offshore stablecoin giant @Tether_to is working with U.S. lawmakers to influence how these fiat-backed currencies are regulated in the U.S.
The issuer of the world’s largest stablecoin $USDT has been a controversial figure in U.S. crypto policy circles due to an…
— Eleanor Terrett (@EleanorTerrett) February 14, 2025
Tether CEO Paolo Ardoino informed Terrett that the company is also looking to offer feedback on two other stablecoin proposals that have been introduced by different politicians. A statement was also made by the CEO:
“We are not going to just throw in the towel and let Tether die just for the sake of not adapting to US 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.”
According to the Fox Business reporter, in order for Tether to comply with US regulations, the company would have to retain one-to-one asset collateral for its tokenized fiat equivalents and have monthly reserve audits done by an accounting firm in the US.
Tether’s participation in the regulatory process follows a meeting between crypto industry leaders and the SEC to address sector-wide regulatory concerns and Trump administration demands to bring stablecoins onshore.
Federal Reserve Warms to Stablecoins for Dollar Strength
Fed governor Christopher Waller stated in an interview on February 6 that US-pegged stablecoins “Will broaden the reach of the dollar across the globe and make it even more of a reserve currency than it is now.”
An increasing number of stablecoin issuers are among the world’s largest purchasers of US government debt.
To keep the US dollar the de facto standard in international financial markets, these companies overcollateralize their fiat tokens with government assets.
Waller elaborated later by saying that financial institutions and individuals should be free to create their own stablecoins and collaborate with state authorities to make sure everyone follows the rules.
The head of the Federal Reserve system is worried about stablecoins, but he’s also worried about depegging events and ecosystem fragmentation.
