Tether Plans to Launch a New Stablecoin for the U.S. Market if Cryptocurrency Legislation Passes

Tether, the world's largest stablecoin issuer to date, has stated that if cryptocurrency legislation is passed by Congress this year, it plans to create a new stablecoin for the U.S. market.

Tether, the world's largest stablecoin issuer to date, plans to create a new stablecoin for the U.S. market if cryptocurrency legislation is passed by Congress this year, according to a report by The Information.

Tether will “act swiftly” to launch the new token once the anticipated stablecoin legislation is passed, Tether CEO Paolo Ardoino said in an interview.

Last Friday, Ardoino mentioned the new stablecoin “is something that can serve the needs of banks, institutions and payment processors” during an interview from Cantor Fitzgerald’s Midtown Manhattan office, which manages Tether’s reserve assets—such as U.S. Treasury bonds.

He stated that Tether plans to establish an entity within the U.S. after legislation is passed, which could be named Tether USA. Recently, Tether moved its headquarters to El Salvador. He expects the new entity to be regulated at the federal level according to the legislation.

“Given that the legislation is expected to pass around August, or as we anticipate before August, if this timeline holds, we will act swiftly,” Ardoino said.

“We are actively engaging in discussions with regulators, explaining the importance of what we are doing outside the U.S. and what we can build inside the U.S.,” he said.

The stablecoin legislation, which is rapidly advancing in Congress, could potentially prevent Tether from entering the U.S. market due to its lack of registration in the country. Tether’s market circulation is $144 billion, exceeding the second-largest stablecoin operated by Circle by over $80 billion.

Unlike other volatile cryptocurrencies, stablecoins maintain a stable value, pegged to the U.S. dollar and backed by Treasury bonds and other secure assets to protect their worth. Stablecoins provide a convenient way to transfer funds across borders and trade cryptocurrencies. Tether has faced criticism for its stablecoin (known as tether or USDT) being used by drug traffickers and terrorist organizations. Tether claims that it collaborates with law enforcement to freeze assets used by criminals.

Tether has appointed Cantor Fitzgerald to manage the assets backing its stablecoin. The company is managed by Howard Lutnick, who continues to oversee these assets until he takes on the role of U.S. Secretary of Commerce.

Ardoino stated that the new stablecoin could be utilized for payments, the digital economy, and interbank settlements. Tether has been investing in its distribution network—a portfolio of companies that could drive the adoption of its stablecoin, such as Tether’s investment of $775 million in the public video platform Rumble.

As Congress rapidly passes legislation, competition affecting stablecoin legislation is heating up. On Wednesday, the House Financial Services Committee approved the stablecoin bill, sending it to the full House. Last month, the Senate Banking Committee passed a similar bill, and President Trump stated that he aims to sign stablecoin legislation by August.

Tether is also exploring ways for USDT to continue being listed on U.S. platforms after the legislation is passed. Ardoino mentioned that he is negotiating with lawmakers to explain how Tether operates and hopes that USDT can remain listed in the secondary market in the U.S., meaning it will continue to be listed on U.S. cryptocurrency exchanges while focusing on international markets.

To enhance the liquidity of its new stablecoin, he anticipates market makers holding both stablecoins to help facilitate one-to-one conversions between the U.S. stablecoin and USDT.

Ardoino stated that Tether has no plans for an IPO and does not need to raise funds for the new entity planned in the U.S., while Circle has applied for an IPO.

Ardoino mentioned that due to potential conflicts of interest, he could not meet with Lutnick but referred to him as a “private friend” and a “great person.”

His main contact at Cantor is Howard Lutnick’s son, Brandon Lutnick. “Great guy, very smart. Very grateful for him running Cantor,” he said.