Tether Is Launching a U.S.-Based Stablecoin to Expand Its Presence and Comply with American Crypto Regulations.

Stablecoin issuer Tether is planning to launch a new U.S.-based dollar-pegged stablecoin that will comply with domestic regulatory requirements, according to a report by TokenInsight.

The new stablecoin, which will be launched independently of the existing USDT, is currently in the works as Tether is getting to know the U.S. regulatory landscape.

At the Token2049 Dubai event on Monday, Tether CEO Paolo Ardoino provided an update on the development, stating that the company is working closely with U.S. regulators to release a fully compliant stablecoin later this year or in early 2026.

According to CNBC, the upcoming stablecoin will be specifically tailored for the U.S. market and will differ from Tether’s international offering.

Last year, reports surfaced that Tether was being investigated by authorities for alleged links to criminal activities and involvement in a Hong Kong fraud case.

In response to the reports, billboards appeared in Times Square, New York, accusing the stablecoin issuer of being the next FTX and highlighting the alleged involvement of Tether executives in a Hong Kong fraud case.

Prior to this, Tether faced scrutiny from the U.S. authorities over the transparency of its reserves. In 2021, the company reached an $18.5 million settlement with the New York Attorney General after allegations that Tether had mixed customer funds and exaggerated the size of its net position.

Since then, Tether has begun publishing independent assurance reports by accounting firm Grant Thornton and has disclosed that it maintains significant holdings in U.S. Treasury securities, which are managed by the well-known financial firm Cantor Fitzgerald.

At the Token2049 Dubai conference, Ardoino strongly criticized the 2024 reports that claimed Tether was being investigated, asserting that the company is actively collaborating with U.S. law enforcement to track down criminals who misuse cryptocurrencies.

“We have been working with U.S. regulators for a year now to launch a U.S.-compliant stablecoin. It will be a new stablecoin, not USDT. We are getting to know the U.S. regulatory landscape. We are getting used to cooperating with several agencies on the same matter, which is not always the case in other parts of the world. But we are making good progress, and I hope we can launch it later this year or early next year.”

What Does This Mean for Tether?

The proposed U.S.-based stablecoin will provide Tether with a strategic entry point into the American market, especially with the GOP-backed GENIUS Act.

This legislation, which stands for "Good Employment, New Investment, and Jobs in the United States," permits Tether and other foreign stablecoin issuers to operate in the U.S. if they cooperate with law enforcement and comply with regulatory frameworks.

However, the legislation also includes provisions to ban any new hiring in the U.S. for a period of five years.

Amid this evolving regulatory environment, the Tether CEO has reportedly become a regular fixture in Washington. Ardoino has been spotted attending numerous private meetings and social gatherings with lawmakers and key figures in the crypto industry.

Recently, House Speaker Kevin McCarthy (R-CA) hosted a gathering at his office on Capitol Hill to discuss the pressing issues facing the nation. Among the attendees were Ardoino, Andreessen Horowitz General Partner (APAC) Angela Chen, and Kevin Molter, Head of Government Relations at Coinbase (NASDAQ:COIN).

In addition, Ardoino took the stage at Token2049 Dubai to highlight some of Tether’s key achievements.

As of March 31, 2025, Tether had issued an astounding 143.6 billion USDT and recorded an average daily volume of $30 billion. The company also announced the completion of the first quarter attestation for 2025 under the regulatory supervision of El Salvador.