Tether CEO Raises Concerns Over Rivals’ Tactics
Paolo Ardoino, the CEO of Tether, has expressed worries about the use of legal and regulatory strategies by competitors to undermine the stablecoin issuer.
Allegations Against US Stablecoin Issuers
In a recent post on X, Ardoino accused some stablecoin issuers in the US of employing political lobbying and legislative actions to target Tether’s operations. He stated:
“While our competitors should focus on improving their products and expanding their reach, their main goal seems to be ‘Kill Tether.’ This malicious intent is evident in every business or political meeting they hold.”
Despite acknowledging that his claims may seem exaggerated, Ardoino insisted that they are backed by numerous sources within and outside the digital assets industry who are in contact with the US administration.
Impact of Tether’s USDT
Ardoino highlighted that Tether’s USDT has become the largest USD-backed stablecoin, providing access to the US dollar for people in developing nations. He emphasized:
“USDt serves over 400 million individuals and continues to grow by 35 million new wallets each quarter, with a specific focus on developing countries while also strengthening the US Dollar.”
He cautioned that the actions of Tether’s competitors could harm the company and adversely affect users in developing economies who rely on USDT for financial stability and dollar-based transactions.
“Tether will not remain passive in the face of these attacks. We are committed to protecting millions of individuals worldwide who are underserved by traditional financial systems, enabling them to access the US Dollar through USDt.”
US Stablecoin Regulations
These concerns arise as the US government works on stablecoin regulations that may prevent foreign stablecoin issuers from accessing US Treasury bills.
Potential Implications of Regulatory Measures
Vance Spencer, a venture capitalist, raised concerns that these regulations could lead to regulatory capture, favoring US-based stablecoin issuers and posing a threat to the global dominance of the US dollar. He expressed:
“The proposed stablecoin legislation may restrict access to the treasury market for international stablecoin issuers, which is concerning.”
If implemented, Tether, currently holding significant US Treasuries, might need to divest these assets to comply with the new laws.
“Ensuring a diverse group of stablecoin issuers can thrive is crucial for the future of US dollar-based stablecoins and must not be hindered by regulatory barriers.”
Recent speculations about Tether selling Bitcoin holdings to meet upcoming US regulations were dismissed by the company, stating that they have adequate reserves to adapt to regulatory changes, even in stringent scenarios.
