Tether Shifts Focus Abroad Amid Uncertain U.S. Stablecoin Regulations

As U.S. lawmakers inch closer to passing legislation on stablecoins, Tether—the world’s largest stablecoin issuer—says it’s not making the U.S. a top priority. Despite movement on Capitol Hill, the company is turning its attention elsewhere, citing regulatory uncertainty and a stronger demand for digital dollars in international markets.

In a recent interview with Bloomberg, Tether CEO Paolo Ardoino emphasized that the company is watching U.S. developments closely, particularly how the proposed Genius Act treats foreign versus domestic issuers. But for now, he said, Tether’s core focus will remain outside of the country.

“We are looking at the Genius Act in a way that will allow us to be compliant. We can be compliant while still having a strong focus on foreign markets.” - Paolo Ardoino

The Genius Act, a bipartisan Senate bill supported by segments of the crypto industry, made progress in Congress on May 19. A parallel version of the legislation also passed through the House Financial Services Committee, though it has not yet reached the House floor for a full vote.

Both versions of the proposed stablecoin laws would require issuers to fully back their tokens with high-quality reserves such as U.S. dollars or short-term Treasuries. The bills would also bring stablecoin companies under existing financial laws, including anti-money-laundering protocols and the Bank Secrecy Act.

Ardoino argued that while stablecoins serve a niche in the U.S., they play a far more vital role globally.

“The U.S. already has Venmo, Zelle, PayPal, debit cards, and credit cards. But in other parts of the world, the financial infrastructure is far less developed—and that’s where stablecoins like USDT are filling a real need.” - Paolo Ardoino

Tether has had a rocky regulatory history in the U.S., including a 2021 settlement with the New York Attorney General over the composition of its reserves. Since then, the company has overhauled its transparency policies. Its reserves are now managed by Cantor Fitzgerald, the Wall Street firm previously led by Howard Lutnick. Lutnick has since stepped back from day-to-day operations after accepting a position in the White House.