Tether CEO: Actively assist the United States in formulating stablecoin bill interpretation

Tether is actively participating in the formulation of US stablecoin regulatory policies. According to Fox Business reporter Eleanor Terrett, Tether has met with U.S. Congressmen to advise on the federal level of stablecoin regulatory framework, especially the Stablecoin Transparency and Accountability Act and other related bills (GENIUS Act and Waters proposals).

Tether CEO Paolo Ardoino stressed that the company is committed to complying with US regulations and will not abandon USDT due to regulation. However, he also acknowledged the uncertainty of the legislative process and Tether hopes to play an active role in the formulation process. Complying with the proposed regulatory requirements would mean that Tether would need to undergo a stricter audit and ensure that its reserve assets remain at a 1:1 ratio and are approved by regulators.

A recent analysis report released by JPMorgan pointed out that in order to meet the proposed U.S. stablecoin regulation, Tether may need to sell some non-compliant collateral assets. The report estimates that Tether's asset reserve compliance rates are 66% and 83% under the STABLE Act and GENIUS Act, respectively. If these bills pass, Tether will need to adjust its reserve structure and turn to high-liquid assets such as U.S. Treasury bonds.

In response, Ardoino retorted that JPMorgan's analysis ignored Tether's equity in other high-liquid assets and the huge profits obtained through U.S. Treasury bonds.

Federal Director Christopher Waller believes that the dollar stablecoin helps consolidate the dollar's dominance in the global financial system. Stablecoin issuers have become major U.S. Treasury bond buyers, and their behavior has increased demand for the US dollar. Waller recommends allowing banks and non-bank institutions to issue stablecoins while strengthening cooperation with state regulators to ensure compliance, but he also expressed concerns about stablecoin risks, such as decoupling risks and ecosystem fragmentation.

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