Tether, the world’s largest stablecoin issuer, is actively engaging with U.S. lawmakers to help shape federal regulations for the stablecoin sector.
According to Fox Business reporter Eleanor Terrett, the company has been in discussions with Representatives Bryan Steil and French Hill, key figures behind the STABLE Act introduced on Feb. 6.
“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. But there is still a lot of uncertainty over what’s actually going to happen, and we want our voice to be heard in the legislative process.”
Tether CEO Paolo Ardoino reportedly confirmed that the company is also seeking to contribute to two additional stablecoin bills proposed by other legislators.
Tether’s involvement in the regulatory debate follows recent discussions between crypto industry executives and the Securities and Exchange Commission (SEC) over broader regulatory concerns.
Compliance with U.S. regulations would require Tether to maintain one-to-one asset backing for its tokenized fiat equivalents and conduct monthly reserve audits through a U.S.-based accounting firm, Terrett reported.
Federal Reserve Governor Christopher Waller recently weighed in on stablecoins, arguing 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 Feb. 6 interview.
The Trump administration has also pushed for stablecoin issuers to establish operations within the U.S.
They provide a stable store of value for crypto traders, facilitate access to US dollars in high-inflation economies, enable faster cross-border payments, and have shown early but promising use cases in retail transactions.
Waller claimed that stablecoins already play an important role in the financial ecosystem.
Powell stated that the Federal Reserve supports the creation of a regulatory framework for stablecoins, noting the importance of protecting consumers and savers.
More recently, Federal Reserve Chair Jerome Powell affirmed the central bank’s support for developing a regulatory framework around stablecoins during a Senate hearing on February 11.
He noted that if stablecoins can foster competition, broaden financial inclusion, reduce transaction costs, and make payments faster and more efficient, then they should be embraced.