Tether CEO Paolo Ardoino has criticized competitors for using regulatory pressure to weaken USDt’s dominance in the US.
By Parth Dubey
Edited by Marco T. Lanz
Updated
3 mins read
Tether CEO Paolo Ardoino has recently accused rival stablecoin firms of using regulatory tactics to eliminate the industry leader rather than competing on innovation. His comments came in response to mounting concerns that new US stablecoin regulations could severely restrict access to US Treasuries for international stablecoin issuers which could include the issuer of USDt.
Ardoino noted how USDt, the company’s flagship stablecoin with a market capitalization of $142 billion, serves as a crucial financial tool for millions across Africa, South America, and other developing regions. According to Ardoino, Tether has built an extensive network of both physical and digital distribution points, ensuring widespread accessibility to dollar-backed assets.
“Tether has over 400 million users and is growing at a pace of 35 million new wallets per quarter,” he added. He further explained that Tether holds over $115 billion in US Treasuries, ranking it as the 18th largest holder—making any attempt to curb its access to Treasuries a direct threat to dollar liquidity abroad.
However, Ardoino accused unnamed competitors of attempting to weaponize regulations against the USDt issuer rather than focusing on building superior products. “Every single business or political meeting they have culminates with the intent to ‘Kill Tether,’” he alleged.
Ardoino’s remarks came in response to a tweet from Vance Spencer, co-founder of Framework Ventures, who raised concerns about an upcoming stablecoin regulatory framework. Spencer suggested that a new policy under discussion in Washington D.C. might prevent international stablecoin issuers from holding US Treasuries—a move he called “batshit crazy.”
Spencer argued that such restrictions would weaken the dollar’s dominance rather than strengthen it. He compared the United States’ increasingly hostile stance toward stablecoins including USDt to Europe’s restrictive approach to AI, suggesting it could lead to American firms losing ground on the global stage.
Meanwhile, the United States Congress has recently proposed two new stablecoin bills: the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act in the House and the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act in the Senate.
They aim to establish clearer regulatory guidelines for stablecoin issuers, requiring them to maintain specific levels of reserves and submit monthly certifications from top executives. While some see the bill as a step toward legitimizing the $230 billion stablecoin market, critics worry that it could impose unnecessary barriers on non-US firms.
Generally, legislative processes involve amendments before any law reaches the president’s desk. However, if enacted in its current form, experts believe these regulations could impact Tether’s reserve structure and overall market stability.
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A crypto journalist with over 5 years of experience in the industry, Parth has worked with major media outlets in the crypto and finance world, gathering experience and expertise in the space after surviving bear and bull markets over the years. Parth is also an author of 4 self-published books.
