Thomas Daniels
According to a Fox Business story, Tether, the biggest stablecoin issuer in the world with a market valuation of over $142 billion, is aggressively interacting with US lawmakers to influence federal stablecoin laws.
Tether is working with Representatives French Hill and Bryan Steil on the STABLE Act, which was introduced on February 6, according to reporter Eleanor Terrett. Paolo Ardoino, the CEO of Tether, has stated that the company is contributing to two further proposed stablecoin laws.
According to Ardoino, “we are not going to just give up and let Tether die for the sake of not adapting to U.S. legislation.” “We want our voice to be heard in the legislative process because there is still a lot of uncertainty.”
Tether would have to retain one-to-one asset collateral for its fiat-backed tokens and submit to monthly reserve audits by a domestic accounting firm in order to comply with U.S. regulations.
Tether’s entry into the regulatory environment comes after the Securities and Exchange Commission (SEC) and leaders of the cryptocurrency industry met recently to discuss issues related to sector-wide compliance. The Trump government has also demanded that stablecoin issuers move their operations onshore.
The Federal Reserve Indicates Stablecoin Openness
Christopher Waller, the governor of the Federal Reserve, has admitted that stablecoins linked to the US dollar contribute to the dollar’s hegemony in the world economy. Stablecoins may expand the U.S. dollar’s reach and solidify its position as the global reserve currency, Waller said in an interview on February 6.
Treasuries are being used by stablecoin issuers to overcollateralize their fiat-pegged tokens and maintain demand for the dollar, making them significant buyers of U.S. government debt.
Waller is in favor of letting banks and non-bank organizations create stablecoins under state-level regulation, but he also cautioned about the dangers, such as possible de-pegging incidents and ecosystem fragmentation.
