Tether Considers US Market Expansion Amid Regulatory Developments
Tether, the leading stablecoin issuer, is considering cautious expansion into the US market pending clearer regulatory guidelines. CEO Paolo Ardoino indicated that any move would depend on the regulatory framework shaped by the incoming Trump administration.
- Trump's executive order may designate cryptocurrency as a national priority.
- Ardoino views this as an opportunity for Tether to assess the evolving US environment.
- Tether has faced challenges in the US due to transparency issues regarding its reserves, including a $41 million settlement in 2021.
- The company is increasing lobbying efforts, hiring former PayPal executive Jesse Spiro.
Regulatory Developments
- New proposals from Senators Lummis and Gillibrand aim to establish a legal framework for stablecoins.
- In Europe, new regulations under MiCA have led Tether to discontinue its euro-pegged EURt stablecoin.
Market Growth
- The stablecoin market saw significant growth in 2024, with a market cap exceeding $200 billion.
- Tether reported $7.7 billion in profits by Q3 2024, surpassing its $10 billion profit forecast.
- USDT leads the stablecoin market with a $137 billion market cap, despite recent declines.
- Circle’s USDC has risen 9.5% over the past month, reaching a $46 billion market cap.
- Tether made headlines with a $775 million investment in video-sharing platform Rumble.