Tether, the world's most traded cryptocurrency with $144 billion in circulation, is considering launching a US-only stablecoin as the Trump administration develops crypto-friendly regulations.
Despite not currently accepting US customers, Tether is actively involved in discussions about US stablecoin regulations, which the administration views as "an important instrument."
The company is working toward a full financial audit and claims to already cooperate voluntarily with US law enforcement agencies including the FBI and Department of Justice.
Trump has promised to make the US "the crypto capital of the planet" with new stablecoin rules expected by August 2025.
Tether invests most of its reserves in US Treasuries, with high interest rates boosting its unaudited net profits to $13 billion last year.
Trump Administration's Crypto Policy Shift
Donald Trump has promised to make the US "the crypto capital of the planet" since returning to the White House in January 2025.
The administration has called for new stablecoin regulations to be ready by August 2025.
US securities regulators have ended or halted most cases previously pursued against crypto companies.
Paolo Ardoino, Tether's CEO, stated the regulatory climate change gave him confidence to visit the US for the first time.
The shift has reportedly made large accounting firms more willing to engage with Tether about auditing.
Tether's Potential US Market Entry Strategy
Tether is considering creating a token exclusively for the US market depending on regulatory outcomes.
The proposed US-only stablecoin would function as "basically a settlement currency," according to Ardoino.
Currently, Tether does not accept customers in the United States despite having $144 billion of tokens in circulation globally.
The company is based in El Salvador but is a major buyer of US government debt.
New regulations would require overseas issuers with cryptocurrencies trading in the US to comply with US law enforcement.
Tether's Financial Structure and Governance
Tether's reserves are managed by US financial services firm Cantor Fitzgerald, run by Howard Lutnick, the current US commerce secretary.
The company invests most of its reserves in US Treasuries and retains the interest paid on these bonds.
High US interest rates boosted Tether's unaudited net profits to $13 billion last year.
Tether recently hired a chief financial officer to work toward a full financial audit, which it has promised for years.
The company is reportedly in discussions with the "Big Four" accounting firms for potential auditing services.
Compliance and Controversy
Tether claims to already work directly with US law enforcement agencies including the FBI, US Secret Services, and Department of Justice.
According to Ardoino, Tether doesn't wait for court orders to act but maintains "a direct connection with law enforcement."
The Financial Times has previously reported that, according to US enforcement officials and information from indictments, Tether is allegedly the preferred cryptocurrency for international criminals.
Tether has "strongly defended itself against accusations that it facilitates criminal activity."
Critics have long expressed skepticism about Tether's reserves and financial transparency.
