Tether Prioritizes Other Markets As U.S. Lawmakers Advance Stablecoin Regulation

Tether plans to prioritize foreign markets despite advancing U.S. stablecoin regulations like the Genius Act.

The proposed U.S. bills would require stablecoins to be fully backed and compliant with anti-money-laundering laws.

Tether is pursuing a full audit and considering a U.S.-compliant stablecoin amid rising interest from U.S. banks in the sector.

As unity on a stablecoin regulatory framework comes closer in the US, Tether Holdings confirms it will maintain its focus on overseas markets. Even with their influence expanding in Washington, company leaders said the focus would still be elsewhere.

Focus Remains Outside the U.S. Amid Regulatory Developments

According to a report by Bloomberg, Tether CEO Paolo Ardoino stated the company is monitoring the new U.S. legislation, but its interest remains overseas. On May 19, the Senate advanced the Genius Act, a bill backed by the crypto industry that aims to regulate stablecoins. The House Financial Services Committee also approved a similar bill, though it has not yet passed a full House vote.

Ardoino acknowledged the evolving U.S. landscape and noted that Tether will observe how the law distinguishes between domestic and foreign stablecoin issuers. He emphasized that Tether, headquartered in El Salvador, will stay focused on global markets rather than expanding within the U.S.

Both submitted bills require stablecoins to be fully backed by cash or low-risk assets such as U.S. Treasuries. They also demand adherence with the Bank Secrecy Act and anti-money-laundering rules. Additionally, foreign issuers may gain approval if their home regulations are deemed comparable.

Tether’s USDT currently holds over 60 percent of the global stablecoin market and is used by 420 million users, primarily in emerging markets. Although the firm does not service U.S. customers directly, its reserves consist largely of assets that comply with proposed regulations. Some holdings, however, include Bitcoin and secured loans, which would not meet the new standards.

Audit Efforts and U.S. Engagement Increasing

Tether is in discussions with a Big Four accounting firm for a long-awaited audit of its reserves. Presently, its quarterly attestations are verified by BDO Italia. Ardoino stated that achieving a full audit remains a top priority

The company’s reserves are managed by Cantor Fitzgerald & Co, previously led by former Commerce Secretary Howard Lutnick. In March, Ardoino visited Washington during President Trump’s digital asset summit, marking his first official trip to the U.S

He said Tether might launch a new stablecoin aligned with U.S. requirements to attract institutional interest. Major U.S. banks, including JPMorgan Chase and Citigroup, are exploring the launch of their own stablecoin

According to Ardoino, Tether does not view this as a threat due to differing customer bases. He said traditional banks primarily target Western markets, while Tether focuses on unbanked populations in emerging economies.Tether’s profits primarily stem from investing its reserves in U.S. Treasuries, gold, and similar securities.