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Tether Eyes Global Expansion Amid US Regulatory Push
Table of Contents
Stablecoin issuer Tether is prioritizing markets outside the U.S. while
seeking to comply with potential American regulations,particularly the
GENIUS Act. CEO Paolo ardoino emphasizes serving the unbanked population
globally.
By Amelia Watkins | MIAMI – 2025/05/25 09:53:17
Tether is strategically focusing on international markets as it navigates
the evolving regulatory landscape in the United States. Despite this
offshore emphasis,the company is actively working towards compliance
with potential U.S. regulations governing digital tokens.
According to CEO Paolo Ardoino, Tether is carefully examining the GENIUS
Act to align its operations with the forthcoming rules. “We are looking
at the GENIUS Act in a way that will allow us to become compliant,”
Ardoino told Bloomberg TV. He added,”We can be compliant while still
having a strong focus on foreign markets.” The GENIUS act has advanced
through the U.S. Senate and awaits consideration in the House.
Tether, headquartered in El salvador, commands over 60% of the global
stablecoin market. The company does not currently serve U.S. customers.
Proposed legislation in both the Senate and House mandates that
stablecoins be fully backed by cash and secure assets, such as
short-term Treasuries. Issuers would also be subject to the Bank Secrecy
Act and anti-money laundering (AML) regulations. Regulators could also
approve foreign issuers adhering to comparable international standards.
While a significant portion of Tether’s reserves comprises compliant
assets, some holdings include non-compliant assets like bitcoin and
secured loans.
Tether’s Compliance Efforts and Audit priorities
“A full audit is our priority.”
Currently, Tether releases quarterly attestations verified by BDO Italia
spa, rather than undergoing a comprehensive audit by a Big Four accounting
firm. Ardoino has stated that “a full audit is our priority.”
Even as Tether pursues U.S. compliance, its primary focus remains on
serving the global unbanked population. According to Ardoino, “Our
customer base are the 30 billion people unbanked that are not touching
the banking system.”
In related news, Ardoino announced on May 5 the upcoming launch of an
artificial intelligence platform enabling payments with bitcoin and
Tether’s USDT stablecoin. Moreover, on May 2, Ardoino mentioned
plans to introduce a new dollar-pegged stablecoin in the U.S., contingent
on the GENIUS Act’s timeline.
Tether’s latest independently audited financial report, released on May 1,
revealed total assets of $149.28 billion against $143.68 billion in
liabilities for its fiat-backed stablecoin holdings as of March 31.
Frequently Asked Questions
- What is the GENIUS Act?
-
The GENIUS Act is proposed legislation in the United States aimed at
regulating stablecoins. It addresses reserve requirements, auditing
standards, and anti-money-laundering (AML) measures for stablecoin
issuers. - Why is Tether focusing on markets outside the U.S.?
-
While Tether aims to comply with potential U.S. regulations, it is indeed
prioritizing markets outside the U.S. to serve the global unbanked
population and capitalize on growth opportunities in regions with less
stringent regulatory frameworks. - What are Tether’s plans for a U.S. stablecoin?
-
Tether intends to launch a new dollar-pegged stablecoin in the U.S.,
contingent on the timeline and outcome of the GENIUS act.
Sources
