At the recent DC Fintech Week, Tether CEO Paolo Ardoino emphasized the need for sensible crypto regulation in the United States. In a remote presentation, Mr. Ardoino discussed Tether’s active engagement with global regulators and compliance efforts.
CEOs of stablecoin issuers emphasized the importance of developing a regulatory framework that fosters innovation while ensuring consumer protection.
Tether CEO urges US to introduce fair cryptocurrency regulations
Tether CEO Paolo Ardoino appeared via video link at DC FinTech Week and expressed optimism that the U.S. will soon introduce clear and effective regulations. He emphasized that these regulations must ensure end-user protection while allowing stablecoin innovation to flourish.
What’s more, he pointed out that even though Tether’s CEO is Italian, he has seen the US lead in technology development for years. He emphasized:
“I think it’s really important that we have smart cryptocurrency regulation and stablecoin regulation in a way that protects end users.”
Ardoino added that these regulations will allow stablecoins like USDT to become a “lifeline” for people in countries facing economic challenges.
Furthermore, the Tether CEO said that the United States plays an important role in the global financial system. According to him, balanced cryptocurrency regulation could increase market stability. He expressed confidence that a U.S. regulatory framework will emerge that supports both innovation and consumer protection.
Cooperation with law enforcement agencies
In his presentation, Ardoino highlighted Tether’s cooperation with law enforcement agencies in 45 countries, including the FBI and the U.S. Secret Service. He noted that Tether has strengthened compliance over the years and overcome its previous reputation for resisting regulatory oversight.
Citing efforts in many countries, Ardoino said:
“You would be hard-pressed to find another financial company that can match the level of law enforcement cooperation and number of government relationships that Tether has.”
He also pointed out that Tether’s aggressive stance on compliance is supported by its 104% overcollateralized reserve, with 84% of its assets held in U.S. Treasuries. This makes Tether extremely resilient during redemption periods, he argued, allowing the company to survive a multibillion-dollar redemption in 2022, which is “more than any bank could withstand.” “It’s a kind of pressure that wasn’t there.”
The USDT company is looking to lend to commodity traders with the aim of providing faster and easier access to capital compared to traditional banks. This new service could impact global commodity trading by offering faster payments and fewer regulatory hurdles.
Strengthen transparency and communication
Ardoino emphasized that Tether is “doubling down” on transparency and communication. Ardoino acknowledged past criticism of Tether’s lack of transparency, particularly regarding the backing of its reserves, and reaffirmed the company’s commitment to improving disclosure.
He emphasized that Tether’s strategy is currently focused on proving that the company’s financial health is strong and that its large holdings in U.S. Treasuries ensure liquidity.
“We’re buying a tremendous amount of U.S. Treasuries,” Ardoino said, highlighting Tether’s role in providing emerging markets with access to U.S. dollar-based assets. He said Tether aims to expose these markets to the “best currencies in the world” through its stablecoin offering.
Additionally, Congressman French Hill, who spoke at the same event, provided insight into the legislative outlook for cryptocurrency regulation. Hill, who chairs the House Financial Services Committee’s virtual currency committee, suggested that a “lame duck” session could be a window to advance stablecoin and virtual currency legislation.
He said gaps in the defense spending package could lead to further financial services legislation. However, he noted that the legislative outcome could depend on the outcome of the 2024 US presidential election.
Hill said if the bill is not passed this year, cryptocurrency regulation will likely become a priority in 2025, especially if there is a change in leadership on the House Financial Services Committee. He added that regulations could change depending on the election results and that regulations will remain a focus going forward.
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Ronnie Mugendi
Ronnie Mugendi is a veteran crypto journalist with 4 years of professional experience and has contributed significantly to various media outlets regarding cryptocurrency trends and technology. With over 4,000 articles published in various media outlets, we aim to inform, educate and introduce more people to the world of blockchain and DeFi. Outside of his journalism career, Ronnie enjoys the thrill of riding his bike and exploring new roads and landscapes.
Disclaimer: The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.
