Tether, the international issuer of the largest stablecoin USDT, is considering creating a separate domestic stablecoin to cater to the needs of the U.S. market. This decision comes in light of the U.S. government’s push for stablecoin legislation, specifically the GENIUS Act.
In a recent interview with Bloomberg, Tether CEO Paolo Ardoino expressed the company’s willingness to comply with the GENIUS Act and ensure that USDT remains compliant. However, Ardoino noted that Tether’s primary market will continue to be emerging economies, as these are the regions that require stablecoins the most.
Ardoino highlighted the importance of stablecoins in providing financial services to the unbanked population, particularly in developing countries where traditional banking services are lacking. Tether’s mission is to provide these individuals with access to a stable form of digital currency, such as USDT, for remittances and savings.
While Tether sees the value of stablecoins in the U.S. market, Ardoino emphasized that the needs of American consumers differ from those in emerging markets. Therefore, Tether is looking to launch a domestically issued stablecoin with unique features tailored to the U.S. economy.
The company is closely monitoring the progress of the GENIUS Act and is eager to see how the U.S. government regulates stablecoins. Ardoino praised the Act for its requirement that stablecoin issuers hold 100% of their reserves in cash equivalents, such as U.S. treasuries, which he deemed a “great idea.”
Tether aims to ensure compliance with the GENIUS Act, whether as a foreign or domestic stablecoin issuer. The company believes that regulatory clarity is essential for the successful launch of a U.S. stablecoin.
The U.S. Senate recently voted to proceed with the GENIUS Act, and the final floor vote is expected to take place after Congress’s Memorial Day recess. Tether is optimistic about the Act’s implications for the stablecoin industry and looks forward to seeing how it will shape the regulatory landscape for digital assets.
In conclusion, Tether’s potential launch of a U.S. domestic stablecoin reflects the company’s commitment to providing innovative financial solutions tailored to different markets. With a focus on compliance and regulatory clarity, Tether is poised to navigate the evolving landscape of stablecoin legislation and continue to serve the needs of users worldwide.