Tether Contemplates Expansion Beyond U.S. Markets During Regulatory Discussions
Tether, the leading global stablecoin issuer, has declared its intention to focus on overseas markets while monitoring the development of stablecoin regulation in the United States. This comes as lawmakers advance the Genius Act, a bill focusing on creating a regulatory framework for stablecoins pegged to the dollar.
Tether stopped serving U.S. customers in 2018, and the Genius Act aims to differentiate regulations for domestic and foreign stablecoin issuers. In a recent interview with Bloomberg, Tether's CEO Paolo Ardoino emphasized that the company will continue to prioritize international markets, irrespective of the Act's outcome.
While keeping a close eye on the Genius Act, Tether does not plan to re-enter the U.S. market. Ardoino commented, "We are keen to understand how the Genius Act distinguishes foreign issuers from domestic ones. Our primary interest will remain outside the U.S. We are evaluating the Act to ensure compliance while maintaining a strong focus on international markets."
The Genius Act,echoing support from several crypto industry players, sets guidelines for issuing and backing dollar-pegged stablecoins. However, backing Tether's USDT with Bitcoin, currently prohibited under U.S. regulations, complicates any potential return to the American market for the company.
Even as large financial institutions like JPMorgan Chase, Wells Fargo, Bank of America, and Citigroup delve into creating their stablecoin offerings, Ardoino remains confident in Tether's direction. He stressed, "We are not concerned about competition from large banks, as they are likely to focus on the Western world. Our customer base comprises the 3 billion unbanked people untouched by the conventional banking system."
The Genius Act's advancement suggests stricter and formalized stablecoin regulation, which may both restrict certain practices and open new opportunities for compliant issuers. If the Act becomes law, Tether, along with other stablecoin issuers, would be subject to new federal standards and oversight, potentially enabling Tether to gain regulatory approval for U.S. operations, provided it fulfills the Act's requirements.
Tether's CEO Paolo Ardoino highlighted that the company will maintain a strong focus on international markets, irrespective of the Genius Act's outcome, as Tether does not plan to re-enter the U.S. market due to current regulations prohibiting the backing of Tether's USDT with Bitcoin. Despite this, Ardoino remains confident in Tether's direction, as he believes large banks will focus on the Western world, leaving room for Tether to cater to the 3 billion unbanked people untouched by the conventional banking system.
