Tether CEO Paolo Ardoino Announces Focus on Overseas Markets

Tether CEO Paolo Ardoino announced the company's focus on overseas markets while navigating U.S. stablecoin laws, revealing plans for a compliant stablecoin and a full audit

Tether, the largest stablecoin issuer, is prioritizing a full audit with a Big Four firm and the launch of a compliant stablecoin for institutional investors, aiming to expand in the U.S. market despite the complexities of the GENIUS Act.

Tether is closely monitoring the progress of the GENIUS Act, which could impose stricter oversight on stablecoin issuers. The Act, which cleared the Senate Banking Committee, aims to grant the Federal Reserve and the Office of the Comptroller of the Currency greater oversight over larger issuers like Tether.

Despite these pressures, Tether remains focused on providing financial access to the unbanked population, which is estimated to be around 3 billion people globally, according to Ardoino. Tether’s USDT is heavily used by the unbanked who rely on it to move funds across borders.

In a step towards enhancing transparency, Ardoino revealed that Tether is in talks with a Big Four accounting firm to carry out a full audit of its reserves. This follows the appointment of Simon McWilliams as CFO in March to steer the company toward greater financial accountability.

Furthermore, Ardoino highlighted plans to launch a compliant stablecoin specifically tailored for institutional investors. This move could position Tether to compete more directly with U.S.-focused stablecoins such as Circle’s USDC, which has been actively engaging with institutional investors.

Stablecoin Issuers Face GENIUS Act Concerns

The interview with Ardoino sheds light on the challenges faced by stablecoin issuers operating in the U.S.

The lawmakers are working on legislation to impose stricter oversight on stablecoin issuers. Among the bills in Congress, the GENIUS Act, sponsored by Sens. Mark Warner (D-VA) and Tim Scott (R-SC), could have a significant impact on the industry.

The Act, which cleared the Senate Banking Committee in April, aims to grant the Federal Reserve and the Office of the Comptroller of the Currency greater oversight over larger issuers like Tether. It would also require issuers to maintain reserves in a safe and sound manner and to comply with Bank Secrecy Act requirements to prevent money laundering.

The House Financial Services Committee has also been holding hearings on stablecoin legislation. Committee Chair Maxine Waters (D-CA) has expressed concern over the risks posed by stablecoins, particularly in the wake of the recent banking crisis.

Stablecoin issuers are hoping to avoid the same fate as crypto exchanges, which have faced a crackdown from the Securities and Exchange Commission. The agency has sued several exchanges, including Binance and Coinbase, for allegedly selling unregistered securities.

Tether’s Strategic Moves Amid Regulatory Landscape

Tether’s strategic moves come amid a rapidly evolving stablecoin landscape.

The regulators are finally setting their sights on the industry, which has seen explosive growth in recent years. Stablecoins are now used by millions of people around the world to send and receive payments, trade cryptocurrencies, and yield farm in DeFi protocols.

The push for a full audit could address long-standing criticisms of Tether’s reserve opacity, potentially boosting its credibility among regulators and institutional players. Tether’s reserves, heavily backed by U.S. Treasury securities through its partnership with Cantor Fitzgerald, have been a point of contention, especially with figures like Howard Lutnick, Trump’s Commerce Secretary, tied to the firm.

As Tether navigates these challenges, its ability to balance global expansion with regulatory compliance will be crucial in maintaining its dominance in the $246 billion stablecoin market.

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