Tether Will Continue Prioritizing International Markets Over Re-entering the American Financial System

As U.S. lawmakers debate new rules for regulating stablecoins, Tether CEO Paolo Ardoino says the company will continue prioritizing international markets over re-entering the American financial system.

As U.S. politicians continue to debate new legislation for regulating stablecoins, Tether CEO Paolo Ardoino has stated that the company will continue to prioritize international markets over re-entering the American financial system.

Speaking to Bloomberg, Ardoino provided an update on Tether’s plans amid the proposed "GEnuis Act," a bipartisan legislative initiative aiming to bring regulatory clarity to dollar-backed digital assets. While the bill is gaining momentum in Congress, Tether is proceeding cautiously.

"Our primary intent will be to ensure that we can continue operating in the U.S. without shifting the focus away from international markets," Ardoino explained, highlighting that the company is closely examining how the legislation differentiates between foreign and U.S.-based issuers.

U.S. Lawmakers Propose Bill to Regulate Stablecoins Like Tether, Paving Way for Wider Adoption

After relocating to El Salvador and ceasing its direct U.S. operations in 2018, Tether has become a dominant player in the global stablecoin sector with its dollar-linked digital currency. However, the company faces limitations due to the proposed regulations in the U.S., particularly the initiative to prohibit stablecoins backed by Bitcoin. This poses a setback for Tether, considering its stated strategy of investing reserves broadly, including in cryptocurrencies.

Furthermore, major banks are venturing into the stablecoin market. Recently, JPMorgan, Citi, and Wells Fargo disclosed their plans to launch their own stablecoins, aiming to expand their offerings in the digital asset domain.

Nevertheless, Ardoino brushed aside concerns about competition from these financial institutions. "Their focus will be on the Western financial system, which is already well served,” he added. "We’re building for the billions who remain excluded from it."