Tether Prepares to Launch a U.S.-Based Stablecoin as Its CEO Ramps Up Washington Presence

Tether, the world's largest stablecoin issuer, is preparing to launch a U.S.-based stablecoin as early as this year, his CEO said Wednesday, as he steps up his presence in Washington to shape crypto regulation.

The company, once accused by a New York regulator of operating a "criminal enterprise" and a preferred coin for money launderers, is now pivoting to partner with American politicians and officials.

In an interview with CNBC at the Token2049 conference in Dubai, Tether CEO Paolo Ardoino said the company could issue a new dollar-pegged stablecoin in the U.S. as soon as this year.

"A domestic stablecoin would be different from the international stable coin," Ardoino said. "It depends on the timeline of the final legislation, but we are looking at that by the end of the year, or early next year at the fastest."

The company is also in talks with U.S. officials about how Tether can best support the government in identifying and tracking any suspicious activity on the blockchain, he added.

Ardoino's recent blitzkrieg through Washington, D.C., which included private meetings with lawmakers, a Capitol Hill lunch with Senator Bill Hagerty (R-TN) and parties with crypto insiders, has put a spotlight on Tether amid the pro-crypto shift under President Trump.

That influence may now be helping shape key legislation, including the GOP-backed GENIUS Act, which critics say includes loopholes that benefit Tether and other foreign issuers.

The legislation would allow foreign stablecoin issuers to operate in the U.S. if they agree to cooperate with authorities and register their stablecoins with the Treasury Department.

But Democrats have raised concerns that the bill could create a regulatory arbitrage opportunity for Tether and other foreign issuers, while hindering the development of new, domestic stablecoins.

"The GENIUS Act is a thinly veiled attempt to create a regulatory backdoor for Tether and other foreign stablecoin issuers, while at the same time hindering the development of new, domestic stablecoins," Democratic senators Bob Menendez and Mark Warner said in a joint statement last month.

"This legislation is a perfect example of how special interest lobbying can corrupt even the best-intentioned policy aims."

Tether did not immediately respond to a request for comment.