Tether plans if cryptocurrency legislation passes

Tether, the world's largest stablecoin issuer, announced that if the US Congress passes cryptocurrency-related bills this year, it will launch a new stablecoin for the US market.

Tether reportedly plans to act quickly after relevant legislation is passed to issue a new stablecoin that meets the needs of banks, institutions and payment processors.

Tether CEO Paolo Ardoino said in an interview that the company will immediately start launching the new token once the expected stablecoin legislation is passed. He revealed that Tether plans to set up an entity called "Tether USA" in the United States and seek federal supervision. This is in contrast to Tether's recent relocation of headquarters to El Salvador.

Ardoino expects legislation to be passed around August and said: "If the timeline is as expected, we will act quickly." Tether is actively communicating with regulators to explain its model of operating outside the United States and the feasibility of operating within the United States.

The growing demand for stablecoins in the U.S. market, and the lack of registration may prompt Congress to quickly advance relevant legislation. Tether currently has US$144 billion in market circulation, far exceeding other stablecoins.

Stablecoins are pegged to the US dollar and backed by secure assets such as treasury bills, and their stable value makes them a convenient tool for cross-border payments and cryptocurrency transactions. While Tether has been criticized for its stablecoin USDT being used for illegal activities, the company claims to be working with law enforcement to freeze assets used by criminals.

Tether has entrusted Cantor Fitzgerald to manage its reserve assets, overseen by Howard Lutnick until he served as Secretary of Commerce.

Ardoino said the new stablecoins will be used in payments, digital economy and interbank settlement. Tether continues to invest in its distribution network, such as its $775 million investment in the Rumble platform.

The rapid advancement of Congress's legislation on stablecoin has intensified industry competition. The House Financial Services Committee has approved the relevant bill and submitted it to a full vote. The Senate Banking Committee has also passed a similar bill, and the president’s goal is to sign the legislation by August.

Tether is also exploring how to continue listing USDT on the U.S. platform after legislation is passed. Ardoino said it is communicating with lawmakers and hopes that USDT will continue to be listed in the US secondary market while focusing on the international market. To enhance the liquidity of the new stablecoins, Tether plans to encourage market participants to hold two stablecoins, promoting their exchange with USDT.

Ardoino denied Tether's plan to conduct an IPO and said there was no need to raise funds for new entities in the United States, which was in contrast to Circle's application for an IPO. He also mentioned that he avoided meeting Lutnick directly due to potential conflicts of interest, but called him a "personal friend" and a "great person" and said his main contact in Cantor was Brandon Lutnick's son.

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