Michaela
Tether, the leading stablecoin issuer, is reportedly in talks to collaborate with U.S. Congressional lawmakers to craft comprehensive stablecoin regulations at the federal level.
Fox Business’s Eleanor Terrett reports that Tether has engaged in discussions with Representative Bryan Steil, chairman of the House Financial Committee’s Subcommittee on Digital Assets, and Representative French Hill regarding the STABLE Act. Both lawmakers introduced the act on February 6, and their talks with Tether mark a significant step in shaping the conversation around stablecoin oversight.
The STABLE Act is a legislative proposal designed to regulate stablecoin issuers operating in the U.S. It would require these companies to maintain a one-to-one reserve of assets pre-approved by regulators and undergo monthly audits by independent U.S. accounting firms.
By enforcing these measures, the bill aims to ensure that stablecoins, which are digital currencies pegged to traditional assets like the U.S. dollar, are fully backed and transparent in their operations. Ultimately, the STABLE Act seeks to enhance consumer protection and financial stability in the rapidly growing digital asset market.
Moreover, Tether CEO Paolo Ardoino told Terrett that the company is working to shape two other stablecoin bills introduced by different legislators, adding that Tether would “comply with the law however it turns out.”
“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,” the CEO said. “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.”
Under the proposed regulations, Tether would need to undergo a complete monthly audit by a U.S. accounting firm and maintain one-to-one reserves in assets that have been pre-approved by regulators. Terrett reported that critics have raised concerns over Tether’s audit practices, arguing that the company has never undergone a comprehensive audit. Instead, it relies on quarterly financial reviews conducted by global accounting firm BDO.
Tether’s proactive dialogue with U.S. lawmakers signals a potential paradigm shift in crypto regulation. By engaging directly with regulators, the company is not only seeking clearer oversight for itself but also paving the way for greater transparency and stability across the digital asset market.
This collaborative approach could redefine industry standards and foster a more secure environment for innovation, setting a new benchmark for regulatory best practices in the crypto space.
Read More
- Tether Invests in Zengo Wallet, Supports Self-Custody
- Coinbase CEO: Exchange Would Delist Tether if Required by U.S. Law
- Tether CEO Cautious About U.S. Expansion, But Sees Big Profits Ahead
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
