Tether Joins Forces with US Lawmakers to Shape Stablecoin Regulations

Stablecoin issuer Tether is actively engaging with Congressional lawmakers in the United States to help shape federal regulations governing the stablecoin industry. According to Fox Business reporter Eleanor Terrett, Tether has been in discussions with key policymakers, including Representative Bryan Steil, chairman of the House Financial Committee’s Subcommittee on Digital Assets, and Representative French Hill. The company is providing input on the recently introduced STABLE Act, unveiled by both lawmakers on February 6.

In addition to the STABLE Act, Tether is also contributing to the development of two other stablecoin bills proposed by different lawmakers. Speaking to Fox Business, Tether CEO Paolo Ardoino emphasized the company's commitment to compliance and regulatory dialogue. “We are not going to just throw in the towel and let Tether die just for the sake of not adapting to US legislation,” Ardoino said. “But there is still a lot of uncertainty over what's actually going to happen, and we want our voice to be heard in the legislative process.”

If incorporated into US regulations, Tether would be required to conduct monthly reserve audits through a US-based accounting firm and ensure that its fiat-backed tokens maintain one-to-one asset collateralization, according to Fox Business.

Tether’s proactive stance comes amid broader discussions within the US government regarding stablecoin regulation. Crypto industry executives have been engaging with the Securities and Exchange Commission (SEC) to address regulatory concerns. Additionally, the Trump administration has been advocating for bringing stablecoin operations onshore, further intensifying the debate around regulatory oversight.

The STABLE Act of 2025, introduced as part of this legislative effort, seeks to establish a clear framework for stablecoin issuers, ensuring compliance with financial regulations while promoting market stability.

The Federal Reserve has also weighed in on the role of stablecoins in the US financial system. In a February 6 interview, Federal Reserve Governor Christopher Waller highlighted the potential benefits of US-pegged stablecoins, stating that they “will broaden the reach of the dollar across the globe and make it even more of a reserve currency than it is now.”

Stablecoin issuers, including Tether, have emerged as major buyers of US government debt, using government securities to overcollateralize their tokens. This practice, in turn, has contributed to sustaining demand for the US dollar in global capital markets.

While Waller acknowledged the advantages of stablecoins in strengthening the dollar’s position, he also raised concerns over potential risks, such as depegging events and fragmentation within the stablecoin ecosystem. He suggested that both banks and non-bank entities should be allowed to issue stablecoins, provided they collaborate with state regulators to ensure compliance.

As the regulatory landscape continues to evolve, Tether’s involvement in shaping stablecoin policies underscores the industry's growing efforts to align with US financial regulations. With lawmakers, regulators, and industry stakeholders actively engaged in discussions, the coming months could prove pivotal in determining the future of stablecoins in the United States.