Tether, the world’s leading stablecoin issuer, is preparing to launch a new U.S.-based stablecoin, with the rollout expected as early as the end of this year or early next year. This move marks a significant shift for the El Salvador-headquartered company, which is actively working to rebrand itself as a cooperative player in American financial regulation and law enforcement after years of scrutiny. CEO Paolo Ardoino has taken a proactive approach in Washington, holding private meetings with lawmakers, including a Capitol Hill lunch with Senator Bill Hagerty, and participating in events with crypto industry figures. These efforts coincide with a broader pro-crypto policy environment emerging under the influence of former President Donald Trump.
Tether’s efforts appear to be aligned with the progression of key legislation such as the GOP-supported GENIUS Act, which contains provisions favorable to foreign stablecoin issuers. These include allowances for companies to operate in the U.S. if they demonstrate strong cooperation with law enforcement. Tether is leveraging this narrative, emphasizing its role in blocking illicit financial activity and asserting that its tools are superior to those of traditional financial institutions.
Despite past legal troubles, including an $18.5 million settlement with the New York attorney general over misrepresentations of its reserves in 2021, Tether has since ramped up transparency. The company now publishes regular attestation reports and boasts approximately $120 billion in U.S. Treasuries, with assets managed by Cantor Fitzgerald. Recent independent audits have confirmed that Tether’s assets exceed its liabilities by around $5.6 billion in the first quarter of the year, down from over $7 billion in December, while Ardoino says the firm has $7 billion in excess equity.
Tether’s connection with Cantor Fitzgerald, led by the sons of U.S. Commerce Secretary Howard Lutnick, has raised concerns about potential conflicts of interest. Ardoino has dismissed these concerns, stating that ethical boundaries are respected and emphasizing the strength of the firm’s relationships across the U.S. financial and regulatory landscape.
The competitive landscape is also heating up, as Eric Trump and Donald Trump Jr. recently unveiled plans to launch a dollar-backed stablecoin via World Liberty Financial, further indicating the increasing political and financial stakes in the stablecoin market as regulation evolves.
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