Tether Considers US-Only Stablecoin Amid Trump Administration's Crypto-Friendly Regulatory Shift

Key Takeaways

• 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.