Tether, the issuer of USDT, is actively engaging with US lawmakers to help shape the future of stablecoin regulations, according to FOX Business journalist Eleanor Terret. Tether CEO Paolo Ardoino confirmed that the company is working closely with legislators to ensure its “voice is heard” during the regulatory process.
“We are going to work within the regulatory framework, and we are going to try to advise on every single one of these field proposals,” Ardoino stated.
Key Stablecoin Bills Under Discussion
Three major stablecoin bills are currently making their way through Congress, each aiming to introduce strict regulatory guidelines for stablecoin issuers:
- The STABLE Act (co-introduced by Representative Bryan Steil and Congressman French Hill) – Requires stablecoin issuers to maintain high-quality, liquid reserves such as US Treasury bills and insured deposits.
- The GENIUS Act (introduced by Senator Bill Hagerty) – Focuses on federal oversight while preserving state-level regulatory authority. It has bipartisan support and is being prioritized for passage within President Trump’s first 100 days in office.
- Rep. Maxine Waters’ Stablecoin Bill – Introduced on February 10, 2025, this bill requires issuers to register and maintain 1:1 reserves backed by US currency or approved assets, with a strong focus on consumer protection and anti-fraud measures.
JPMorgan: Tether May Need to Sell Bitcoin Holdings
With USDT holding a dominant 60% market share in the stablecoin industry and $114 billion in US Treasury bills, JPMorgan analysts suggest that Tether may need to sell part of its Bitcoin and precious metals holdings if the proposed regulations pass.
Additionally, under the new regulatory framework, Tether would need to submit monthly audits conducted by a US-based accounting firm to ensure compliance.
In response, Ardoino has criticized JPMorgan’s conclusions, stating they misunderstand Tether’s operational model and the broader regulatory landscape.
What’s Next for Stablecoin Regulation?
The Republican-controlled House and Senate are aiming for April 2025 as the deadline for finalizing and signing a stablecoin bill into law. With Tether’s ongoing engagement, the regulatory framework could significantly impact the future of the stablecoin market and crypto industry in the US.
