Tether, the company behind the world's largest stablecoin USDT, is planning to develop a United States-exclusive digital currency in response to the Trump administration's favorable stance toward cryptocurrency regulation, according to CEO Paolo Ardoino.
What to Know:
- Tether currently controls 70% of the stablecoin market with $144 billion in circulation but doesn't accept US customers
- The Trump administration aims to position the US as "the crypto capital of the planet" with new stablecoin regulations by August
- The SEC has recently determined that stablecoins are not classified as securities, easing regulatory pressure on the industry
The potential expansion comes as President Donald Trump's administration signals strong support for cryptocurrency growth in the United States, creating opportunities for companies previously restricted from the American market. Ardoino revealed in a Financial Times interview that Tether is actively participating in regulatory discussions, viewing the changing landscape as a chance to create a token specifically designed for American users.
"An important instrument for the United States" is how the White House now characterizes stablecoins, according to Ardoino, marking a significant shift from previous administrations. This acknowledgment could facilitate Tether's entry into the largest economy in the world after years of operating outside its borders.
Tether's dominant position in the global stablecoin market underscores the significance of any potential move into the US market.
With approximately $144 billion in circulation representing 70% of the total stablecoin market, the company's interest in creating a US-specific token signals confidence in the emerging regulatory framework.
The cryptocurrency industry has experienced notable regulatory relief since Trump's return to office. The Securities and Exchange Commission has paused or dismissed most legal actions against cryptocurrency entities that characterized the previous administration's approach. More significantly, the SEC's Division of Corporate Finance recently clarified that stablecoins should not be classified as securities, removing a major regulatory obstacle.
Legislative Momentum Builds for Stablecoin Framework
Trump's public commitment to making the United States "the crypto capital of the planet" has accelerated the timeline for regulatory clarity. The president has called for new stablecoin regulations to be prepared by August, creating both urgency and opportunity within the industry.
Ardoino expressed optimism about these developments to the Financial Times, noting that favorable regulations could prompt Tether to create "a domestic stablecoin that could function effectively as a settlement currency." This US-focused strategy represents a significant pivot for a company that has historically operated primarily in international markets.
Industry experts emphasize that cohesive federal guidelines are essential for widespread adoption. Jonathan Levin, co-founder and CEO of Chainalysis, stressed that without a comprehensive federal framework, financial services firms and international enterprises will continue to face challenges in integrating stablecoins into their operations.
The potential for growth in the sector is substantial, as evidenced by Tether's reported $13 billion in profits last year despite broader cryptocurrency market volatility.
This financial success demonstrates continued interest in stablecoins as a stable store of value within the often turbulent digital asset ecosystem.
Several legislative initiatives have already been introduced to support stablecoin development, signaling growing congressional interest in fostering this segment of the cryptocurrency market. These bills could provide the regulatory structure necessary for companies like Tether to confidently enter the US market.
Meanwhile, Circle, Tether's primary competitor and issuer of the USDC stablecoin, is preparing for a public offering in the United States. This move further illustrates the growing mainstream acceptance of stablecoin issuers as legitimate financial institutions worthy of public investment.
Closing Thoughts
Tether's potential launch of a US-exclusive stablecoin represents a significant development in the evolving relationship between cryptocurrency companies and American regulators. With the Trump administration's supportive stance and ongoing legislative efforts, the stablecoin market appears poised for substantial growth and integration within the traditional financial system.