Tether CEO Paolo Ardoino has expressed concern that company rivals are using legal and regulatory tactics to destabilize Stablecoin publishers.
In a February 25th post on X, Ardoino argued that some Stablecoin publishers in the US were using political lobbying and legislative efforts to target Tether’s operations.
According to him:
“The business model of our competitors is to build better products and even bigger distribution networks, but their true intention is “kill tether.” Any business or political meetings they have reached a culmination of this intent. ”
Ardoino pointed out that while his claim may be perceived as “exaggeration,” it claimed:
“The facts and that are reported independently by hundreds of people inside and outside the digital asset industry in contact with the US administration.”
Tether’s CEO emphasized that the company’s USDT has established itself as the largest USD-backed Stablecoin, allowing people in developing countries to access the US dollar through USDT. He pointed out:
“USDT is currently supporting more than 400 million people, growing at a new wallet pace of 35m per quarter, strengthening the US dollar while focusing on developing countries.”
He warned that the actions of these rivals could affect Tether and negatively affect users in developing countries who rely on USDT for financial stability and access to dollar-based transactions.
Ardoino concluded:
“The tethers are not stationary so they won’t succeed in these attacks. We cannot allow them. We stand strong to protect hundreds of millions of people around the world left behind in the traditional financial system and to help them access the US dollar via USDT.”
US regulations
These comments are as the US government continues to develop stablecoin regulations that could be reportedly reportedly preventing offshore stubcoin issuers from accessing the U.S. Treasury bill.
Venture capitalist Vance Spencer emphasized that these legislative efforts could amount to regulatory capture, and supported the US-based Stablecoin publisher at the expense of international competition. He added that such restrictions could also threaten long-term control of the US dollar.
He wrote:
“The soon-to-be revealed Stablecoin Markup appears to have requirements to block access to the financial markets to centralized international Stablecoin issuers.
Tether, who currently holds more than $115 billion in the US Treasury Department and ranks as the 18th largest holder, may need to sell those holdings if the proposed law is in place.
With this in mind, Spencer states:
“The future of stubcoin can only be based on the US dollar if it allows a broader competitive stubcoin issuer who can thrive and reject gatekeepers/gas lighting by those interested in regulatory capture.”
The development comes less than weeks after speculation came to light that Tether could be forced to sell parts of Bitcoin Holdings to comply with future U.S. stubcoin regulations.
However, Tether rejected such concerns, claiming that even under the most restrictive scenarios, he held excess assets that could be adapted to changing regulations.
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