Tether's $142B market cap eyes US stablecoin laws

Tether (CRYPTO:USDT), a stablecoin issuer with a market capitalisation exceeding $142 billion, is actively engaging with U.S. lawmakers to influence the development of federal stablecoin regulatory policies.

According to Fox Business reporter Eleanor Terrett, Tether has been in discussions with Representatives Bryan Steil and French Hill, who are key figures behind the STABLE Act introduced on February 6.

Tether's CEO, Paolo Ardoino, stated that the company aims to contribute to two additional stablecoin bills proposed by other legislators.

"We are not going to just throw in the towel and let Tether die just for the sake of not adapting to U.S. legislation," Ardoino said, emphasising the company's commitment to having its voice heard in the legislative process.

Compliance with U.S. regulations would require Tether to maintain one-to-one asset backing for its tokenised fiat equivalents and conduct monthly reserve audits through a U.S.-based accounting firm, as reported by Terrett.

Tether's involvement in these regulatory discussions occurs amidst broader conversations between crypto industry executives and the Securities and Exchange Commission (SEC) regarding regulatory concerns.

Federal Reserve Governor Christopher Waller noted that U.S. dollar-pegged digital assets could strengthen the dollar's global dominance.

"Stablecoins will broaden the reach of the dollar across the globe and make it even more of a reserve currency than it is now," Waller said in a February 6 interview.

However, Waller also cautioned against potential risks such as de-pegging events and the fragmentation of the stablecoin sector, advocating for a balance between innovation and regulatory safeguards.

Congressman Bryan Steil mentioned Tether's participation in talks regarding the STABLE Act, highlighting the ongoing efforts to secure congressional approval on stablecoin regulation.

At the time of reporting, the Tether (USDT) price was $1.00, with a 0.0% change.