As the digital asset landscape continues to evolve, major players like Tether are strategically navigating global regulatory currents. The issuer behind the world’s largest stablecoin, USDT, has affirmed its commitment to global expansion and engagement, even as the United States progresses with its own legislative framework for digital currencies. Despite this, Tether does not intend to register USDT in the U.S., though it is considering a distinct stablecoin specifically for that market.
Strategic Market Focus
Tether’s CEO, Paolo Ardoino, shared insights during a recent interview, underscoring the company’s primary focus on international markets over the United States. He highlighted that while the U.S. benefits from diverse financial settlement options, a significant portion of the global population — estimated at 3 billion individuals in developing nations — remains unbanked. These communities, Ardoino emphasized, often lack access to traditional financial services and require a stable digital alternative, precisely what USDT aims to provide. This demographic, often excluded from conventional finance, represents Tether’s core strategic priority.
Navigating the Regulatory Landscape: US vs. EU
Ardoino acknowledged the “Guiding and Establishing National Innovation for U.S. Stablecoins” (GENIUS Act) as a significant step forward in U.S. stablecoin regulation. He noted that the approach adopted by American authorities, particularly concerning foreign issuers, is crucial for the company. While the GENIUS Act presents a more palatable regulatory framework for Tether, the company finds the European Union’s Markets in Crypto Assets (MiCA) regulation less favorable.
GENIUS Act vs. MiCA
Ardoino specifically critiqued MiCA’s stipulation that dollar-denominated stablecoin issuers must hold 60% of their reserves in European banks, deeming it an impractical requirement. In contrast, he expressed comfort with the GENIUS Act, suggesting it offers a pathway for compliance without compromising their global presence.
| Regulation | Tether’s View | Key Implication/Critique |
|---|---|---|
| GENIUS Act (U.S.) | Favorable; “comfortable” | Significant step forward in U.S. stablecoin regulation; allows for continued international presence. |
| MiCA (EU) | Less favorable; “bad idea” | Requires 60% of dollar stablecoin reserves to be held in European banks. |
Future Plans and Lessons Learned
Tether is actively exploring the launch of a new stablecoin tailored to meet U.S. regulatory standards, designed to be competitive while adhering to domestic requirements. However, any further steps in this direction are contingent upon the final passage of the GENIUS Act.
The CEO also referenced the challenges faced by Circle, the issuer of USDC, during the Silicon Valley Bank crisis in March 2023, where a portion of their reserves became inaccessible. Ardoino stated that Tether “learned a lesson” from this incident, implying a reinforced commitment to robust reserve management.
The GENIUS Act itself saw preliminary review in the U.S. Senate on May 20, 2025. Its earlier progress was reportedly hindered by a group of Democrats who criticized the bill for potentially aligning with cryptocurrency initiatives supported by Donald Trump, who is currently the President of the United States.
Chris brings over six years of hands-on experience in cryptocurrency, bitcoin, business, and finance journalism. He’s known for clear, accurate reporting and insightful analysis that helps readers stay informed in fast-moving markets. When he’s off the clock, Chris enjoys researching emerging blockchain projects and mentoring new writers.