Tether’s CEO Hopeful Against US Crypto Regulation

Tether CEO Paolo Ardoino stated yesterday that they expect a sensible crypto regulation by the US government soon.

Tether is the largest global issuer of stablecoins. Stablecoins are a subset of the cryptocurrency industry that is typically pegged to the dollar or other assets and is intended to make crypto transactions more stable.

Ardoino, who attended the event on his 40th birthday, argued that it is difficult to find another financial firm that reaches the level of cooperation and number of agency relationships that Tether has in 45 countries, including the Federal Bureau of Investigation and the US Secret Service.

Additionally, the CEO said of the lawsuits against stablecoins and Tether, which now has more than 330 million users, that the company has survived billions of dollars in sudden redemptions, more than 10% of its 2022 reserves, and that this is “the kind of pressure that almost no bank can survive” . While Ardoino argues that Tether’s 104% over-collateralized reserve, based mostly (84%) on US Treasuries, is the highest quality backing the company can provide, the company continues to face criticism for not being transparent enough.

Ardoino argued that the company’s assets could rival a middle-class sovereign in a Treasury portfolio, but for the U.S. this poses no risk because it does not represent a single asset that could buy or dump a large portion of the market in a single action.

Also at the conference, Rep. French Hill (R-Ark.), who leads the crypto panel within the House Financial Services Committee, said crypto and stablecoin legislation is likely to gain traction in the final weeks of the congressional session, known as the “lame duck” period. He added that the Senate left a gap in a defense spending package for potential financial services additions. But Hill noted that legislative strategy may depend on who wins the presidential election.