Tether CEO Paolo Ardoino has raised concerns about a potential U.S. stablecoin bill that could restrict offshore issuers from accessing U.S. Treasury markets. He accused competitors of using political influence to weaken Tether’s role in the global financial system.
Stablecoin Regulations Spark Controversy
A new stablecoin bill markup, expected to be revealed soon, may prevent non-U.S. issuers from holding U.S. Treasuries. Vance Spencer, co-founder of Framework Ventures, called the move an attempt at regulatory capture.
“This is a blatant attempt at regulatory capture by U.S. players done at the expense of U.S. national interest,” Spencer wrote on X.
USDt is the most successful tool for US Dollar hegemony and distribution across emerging markets.
— Paolo Ardoino 🤖 (@paoloardoino) February 25, 2025
Tether built, over the last decade, the widest physical and digital distribution network, spacing from thousands of kiosks in Africa and South America to digital remittances… https://t.co/KD2oUzemT8
Two bills—the GENIUS Act in the Senate and the STABLE Act in the House—have been proposed. Spencer did not specify which one might introduce these restrictions.
Ardoino: Competitors Are Lobbying Against Tether
Ardoino responded to Spencer’s concerns, claiming rival stablecoin issuers were working behind the scenes to push Tether out of the U.S. market.
“While our competitors’ business model should be to build a better product and even bigger distribution network, their real intent is ‘Kill Tether.’ Every single business or political meeting that they have culminates with this intent,” Ardoino said.
Although he did not mention a specific company, speculation quickly pointed to Circle, the issuer of USDC. Strive Funds CEO Matt Cole and others on social media suggested that Circle was lobbying for a competitive advantage.
Tether’s Role in U.S. Dollar Dominance
Ardoino argued that Tether plays a crucial role in maintaining the U.S. dollar’s global influence. He highlighted USDT’s widespread adoption, especially in developing nations, and its role in digital payments.
“Tether built, over the last decade, the widest physical and digital distribution network, spacing from thousands of kiosks in Africa and South America to digital remittances platforms, from payment backbones to institutional tools,” Ardoino said.
According to him, USDT is held by over 400 million people, with 35 million new wallets created each quarter. He warned that attempts to weaken Tether could harm U.S. dollar adoption instead of strengthening it.
Regulatory Battles Continue
As U.S. lawmakers debate stablecoin regulations, tensions between issuers are escalating. If the rumored restrictions move forward, they could reshape the market and force Tether to find alternative reserve assets.
Ardoino has positioned Tether as essential to global finance. However, growing regulatory pressure may soon challenge its role in U.S. markets.
