Tether Engages with US Lawmakers on Stablecoin Regulations

• Tether is actively engaging with lawmakers to influence stablecoin regulations, including the STABLE Act discussions.
• Proposed regulations may require Tether to sell Bitcoin and precious metals to maintain compliance with new reserve requirements.
• Congress is reviewing three stablecoin bills, with the GOP-controlled House and Senate targeting April for a finalized law.

Tether is working with US lawmakers to help shape stablecoin regulations, according to FOX Business journalist Eleanor Terret. The company’s CEO, Paolo Ardoino, confirmed ongoing discussions with key legislators as new regulatory proposals move forward in Congress.

Tether’s Role in Regulatory Discussions

Ardoino stated that Tether aims to ensure its perspective is considered in shaping stablecoin legislation. He emphasized that the company is willing to compromise and adjust operations to comply with the regulatory framework. The firm is actively participating in discussions regarding three proposed stablecoin bills in the House and Senate.

Representative Bryan Steil, chairman of the Financial Committee Digital Assets Subcommittee, confirmed Tether’s involvement in talks related to the STABLE Act. The bill, co-introduced by Steil and Congressman French Hill, proposes that stablecoin issuers maintain reserves consisting only of high-quality liquid assets, such as US Treasury bills and insured deposits.

Tether, which holds approximately 60% of the stablecoin market with its USDT token, has over $114 billion in short-term Treasury bills in reserves. JPMorgan analysts indicate that if the new regulations are enacted, Tether may need to adjust its asset holdings by selling Bitcoin and precious metals to comply with the requirements.

Key Stablecoin Bills in Congress

Three proposed bills seek to establish a regulatory framework for stablecoins. The STABLE Act has bipartisan support and is under review ahead of a digital assets subcommittee hearing.

Senator Bill Hagerty introduced the GENIUS Act on February 4, 2025. The bill calls for federal oversight of payment stablecoins while preserving state regulatory authority. It has gained bipartisan backing and is being prioritized within President Trump’s first 100 days in office.

On February 10, 2025, Rep. Maxine Waters introduced another stablecoin bill requiring issuers to register and maintain one-to-one reserves backed by US currency or approved assets. This proposal emphasizes consumer protection and anti-fraud measures.

The Republican-controlled House and Senate are targeting April for passing one of the bills into law. Lawmakers continue debating regulatory frameworks to address the growing role of stablecoins in financial markets.