Paolo Ardoino, the CEO of Tether, has revealed that Tether is considering the introduction of a new U.S.-domiciled stablecoin as a solution to the impending regulatory legislation. 

With the growth and integration of the cryptocurrency industry, several jurisdictions around the world have begun creating stablecoin-specific regulations to control the effects on their financial systems.

These new laws could impact several businesses. Tether, in particular has faced setbacks in certain markets. Earlier this week, Binance delisted USDT from its European sites, as the stablecoin does not comply with the European Union’s new requirements for stablecoin issuers.

Ardoino, the CEO, stated that despite the company’s investments in multiple European companies launching grassroots dollar- and euro-backed stablecoins compliant with EU regulations, he pictures a future long-term reality in which USDT is no longer a major player in either the United States or Europe.

Now facing a ban in the U.S., the company is open to considering alternatives.

Tether could issue a new stablecoin

Tether is contemplating a new, U.S.-domiciled stablecoin to comply with the new regulations imposed by the Trump administration.

The U.S. Congress has made changes to legislation to create clearer rules and regulations for stablecoins. The proposed bills, notably the STABLE and GENIUS Acts, seek to impose strict supervision on stablecoin issuers. This supervision will include mandatory reserve requirements and regular audits. These measures are aimed at enhancing transparency and ensuring the financial stability of these digital assets.​

The GENIUS Act, introduced by Republican Senator Bill Hagerty, is particularly noteworthy. The bill necessitates that stablecoin issuers with assets exceeding $10B must undergo strict federal supervision, including monthly disclosures of reserve compositions to the Office of the Comptroller of the Currency. This level of scrutiny is unprecedented for Tether, which has historically operated with limited regulatory oversight.

The company is a $144B stablecoin giant and has never submitted to a full financial audit. As such, it is particularly difficult to comply with these regulations.

Critics and competitors of the company have argued it would exit the U.S. altogether if it was forced to comply with the country’s anti-terrorism and anti-money laundering rules.

Ardoino emphasized Tether’s commitment to compliance and transparency in an interview with The Guardian. He referenced his company’s cooperation with over 200 agencies worldwide to combat illicit activities. Even then, adapting USDT to meet the specific requirements of the new STABLE and GENIUS Acts will be challenging for the company. That’s why it’s looking at a new stablecoin better specifically for the U.S. market.​

USDT alternatives are jockeying for Tether’s spot

Competitors like Circle, the issuer of USDC, are well-positioned to capitalize on the emerging regulatory framework. Circle has demonstrated a strong commitment to transparency. The company is regularly audited by Deloitte, and as such compliance to the new U.S. regulations should not be an issue for the company.

Its compliance readiness may also create an avenue for Circle to get a competitive edge over Tether, which could potentially reshape the dynamics of the stablecoin market.

Ardoino maintains that Tether has “the highest level of compliance” among its competitors when it comes to cooperation with law enforcement. He stated that Tether is currently in conversations with multiple accounting firms about a full audit but that the firms have so far been rightfully cautious about engaging with the novel stablecoin market.

Ardoino also bashed his competitors, claiming that he would stay out of the U.S. due to the new regulations. He perceives “the smell of desperation” from these companies and says that they are simply hoping that his company would stay out of the United States.

The Tether CEO has said he believes that USDT will remain listed on U.S. secondary markets. He added that the access to USDT globally is “very important for remittances.”

Presently, the Senate’s stablecoin bill only bans non-compliant stablecoin issuers from offering tokens directly to American users. The House bill goes further and bans the trade of such non-compliant tokens on exchange platforms like Coinbase two years after the law goes into effect.

Cryptopolitan Academy: Want to grow your money in 2025? Learn how to do it with DeFi in our upcoming webclass. Save Your Spot

Louisiana has introduced a new bill to make election betting illegal. According to the bill authored and introduced in the Louisiana Senate by Senator Rick Edwards, any activity related to election betting will be banned if it passes. This would mean that accepting and placing bets on any elections is illegal.

The wording of the Louisiana bill, Senate Bill 90, sought to cover all aspects related to betting on political elections. “No person shall knowingly, willfully, or intentionally participate in any bet or wager that is based upon any contingency whatsoever that arises from an election,” it read. 

Louisiana wants to outlaw election betting

The Louisiana bill also clarified that the bets would have to satisfy some conditions to be termed illegal. Some of the conditions include making an offer or wager, accepting any offer or wager, taking a share or monetary interest in a bet or wager, and acting in a way or manner that shows relation to a bet or wager on an election.

The proposed penalty is the same as the current penalties for election violators. For first offenders, a fine of $1,000 or a jail term of up to a year, while repeat offenders are to pay a fine of $2,500 or a jail term of up to five years.

Online sports betting has been legal in Louisiana since 2022. Last October and November, several bets were placed online during the election season. Several platforms ran election markets, with most residents trying to make profits from the election. The state collects a considerable amount in taxes from online betting, with February alone seeing the state net more than $7 million in tax, up 87% from February 2024.

The growing pattern of election betting was evident in the last United States general election after Polygon-based betting platform Polymarket announced wagers on different markets, including the winner of the presidential election. The platform even went as far as tipping the eventual winner, Donald Trump, to take the coveted office. While the platform was previously used by crypto participants, the markets opened it up to the general American population.

States hit betting sites with cease-and-desist letters

States in the United States have been hitting betting sites with cease-and-desist orders, putting them all over the news. States like Illinois, New Jersey, Ohio, and Nevada have accused several platforms, including Kalshi, Robinhood, and Crypto.com of carrying out unlicensed sports betting. Last year, Kalshi and Robinhood netted about $300 million alone from the United States presidential election.

The sites have argued this week that their Super Bowl and March Madness markets do not constitute sports betting. However, they made clearer advertisements during the elections, urging the general public to bet on the elections. Kalshi, for instance, made an ad on Right Side Broadcasting Network, flashing a message that read “Bet on the US election, Bet $100 on Trump, Get $175” across the Madison Square Garden Rally screen during the Donald Trump rally.

Kalshi has argued that the advertisements are just for marketing purposes, noting that the “bet” in the statement is only used to consider a financial position. Kalshi is governed by the Commodities Futures Trading Commission (CFTC) rather than states. The company has initiated a counter-lawsuit against New Jersey and Nevada over their cease-and-desist letters.

The CFTC also tried to bring down all betting markets related to the election last year but failed to do so. A federal judge at the time ruled that “the Commission has not substantiated that risks to election integrity are likely to materialize if Kalshi is allowed to operate its exchange.” 

Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now