Tether is eyeing US expansion while awaiting regulatory clarity, ramping up lobbying efforts, and expecting record-breaking profits for 2024.
Tether USDT $1.00 24h volatility: 0.0% Market cap: $146.09 B Vol. 24h: $63.75 B , the world’s leading stablecoin issuer, is considering a cautious expansion into the US market while waiting for clearer regulatory guidelines. In an interview with Bloomberg TV on January 16, Tether CEO Paolo Ardoino stated that any expansion move would hinge on the regulatory framework emerging under the incoming Trump administration.
President-elect Donald Trump is expected to sign an executive order soon after his January 20 inauguration, designating cryptocurrency as a national priority. Ardoino expressed optimism, calling this development “a great opportunity to start looking at the US environment and how it will change”.
Despite its cautious stance, Tether recognizes the US as a global leader in technological innovation. However, Ardoino has previously criticized the country for lagging in crypto regulation, calling it “the first time in history that [he sees] the US dropping the ball”.
Notably, Tether has faced major roadblocks in the US, particularly over allegations of lacking transparency in its reserves. In 2021, the company settled with US authorities for $41 million over claims it misstated its reserves.
Tether has recently increased its lobbying efforts in the region. In September, it hired former PayPal executive Jesse Spiro to lead government relations. According to Ardoino, these efforts reflect Tether’s commitment to improving its standing in the US market.
Major Stablecoin Adoption Ahead?
Efforts to regulate stablecoins in the US are expected to gain momentum under the new administration. Proposals by Senators Cynthia Lummis and Kirsten Gillibrand aim to establish a clear legal framework, potentially benefiting stablecoin issuers like Tether.
In Europe, new regulations for stablecoins are introduced as part of the Markets in Crypto Assets (MiCA) regulation. Tether responded by discontinuing its euro-pegged EURt stablecoin in November.
Stablecoin Market Grows
2024 was a massive growth year for the stablecoin market. Investors are increasingly leveraging stablecoins for high-yield opportunities in decentralized finance (DeFi).
Tether is poised to surpass its 2024 profit forecast of $10 billion, having already recorded $7.7 billion in profits by the end of the third quarter. The overall stablecoin market also saw its market cap surpass the $200 billion mark by the end of the year, currently sitting at $214.75 billion.
Tether’s USDT remains the leader in the stablecoin market with a $137 billion market cap, despite a 2.15% decline caused by regulatory uncertainties linked to the EU’s MiCA framework. Meanwhile, Circle’s USDC USDC $1.00 24h volatility: 0.0% Market cap: $62.36 B Vol. 24h: $13.39 B has shown major growth, rising 9.5% over the past month to reach a $46 billion market cap. Together, these two stablecoin giants dominate the sector, accounting for 86% of the total stablecoin market capitalization.
Tether also made headlines in December with a $775 million strategic investment in video-sharing platform Rumble, a move Ardoino described on X as supporting “freedom of speech”.
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