Tether Works With US Lawmakers to Influence How Stablecoins Are Regulated

Reportedly, Tether, a stablecoin issuer, is in discussions with US congressional representatives to assist in the development of federal stablecoin regulatory laws.

Stablecoin issuer Tether is reportedly engaging with US congressional representatives to help shape federal stablecoin regulatory legislation.

According to Fox Business reporter Eleanor Terrett, Tether has been working on the STABLE Act, which was introduced by French Hill and Representative Bryan Steil on February 6, with the House Financial Committee’s Subcommittee on Digital Assets, chaired by Steil, overseeing the bill.

🚨NEW from me: Offshore stablecoin giant @Tether_to is working with U.S. lawmakers to influence how these fiat-backed currencies are regulated in the U.S.

The issuer of the world’s largest stablecoin $USDT has been a controversial figure in U.S. crypto policy circles due to an…

— Eleanor Terrett (@EleanorTerrett) February 14, 2025

Tether CEO Paolo Ardoino told Terrett that the company is also looking to provide feedback on two other stablecoin bills that have been introduced by separate lawmakers.

“We are not going to just throw in the towel and let Tether die just for the sake of not adapting to US legislation. But there is still a lot of uncertainty over what’s actually going to happen, and we want our voice to be heard in the legislative process,” the CEO said in a statement.

In order to comply with US regulations, Tether would have to maintain one-to-one asset collateral for its tokenized fiat counterparts and have monthly reserve audits conducted by a U.S.-based accounting firm, the Fox Business report noted.

Tether’s participation in the regulatory process comes following a meeting between crypto industry heads and the SEC to discuss sector-wide regulatory concerns and the Trump administration’s demand to onshore stablecoins.

Federal Reserve Warns to Keep Stablecoins for Dollar Strength

In an interview on February 6, Fed governor Christopher Waller said that US-dollar pegged stablecoins “will broaden the reach of the dollar across the globe and make it even more of a reserve currency than it is now.”

Among the world’s largest buyers of U.S. government debt are stablecoin issuers.

To maintain the U.S. dollar as the de facto standard in international financial markets, these companies overcollateralize their fiat tokens with government assets.

Financial institutions and individuals should be permitted to create their own stablecoins and work with state authorities to ensure everyone plays by the rules, Waller elaborated later.

While concerned about stablecoins, the Federal Reserve head is also concerned about depegging events and ecosystem fragmentation.