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Tether CEO is denounced rival Stablecoin companies using regulations instead of innovation to challenge USDT. He highlights the role of USDT in financial inclusion across developing countries with over 400 million users.
Tether CEO Paolo Ardoino has recently accused rival Stablecoin companies of using regulatory tactics to eliminate industry leaders rather than competing in innovation. His comments came in response to raising concerns that new US stubcoin regulations could be severely restricted, which could severely limit access to the US Treasury Department to international stable issues that could include USDT publishers.
Ardoino pointed out how USDT, the company’s flagship Stablecoin with a market capitalization of $142 billion, functions as a key financial tool across Africa, South America and other developing regions. According to Ardoino, Tether has built an extensive network of both physical and digital delivery points, ensuring wide accessibility to dollar-backed assets.
“Tether has over 400 million users and is growing at a 35 million new wallet pace per quarter,” he added. He further explained that Tether has more than $115 billion in the US Treasury Department, ranking as the 18th largest holder.
But rather than focusing on building a great product, Ardoino accused unnamed competitors of trying to weaponize regulations against USDT publishers. “All business or political meetings that they reached a peak with the intention of ‘killing the Tethers’,” he argued.
We proposed a US stubcoin bill
Ardoino’s remarks came in response to a tweet from Vance Spencer, co-founder of Framework Ventures. Spencer proposed that the new policy being discussed in Washington, DC could prevent international stubcoin issuers from holding US property.
Spencer argued that such restrictions would weaken the dollar’s control rather than strengthen it. He compares the US’s increasingly hostile stance towards Stablecoins, including USDT, to Europe’s restrictive approach to AI, suggesting that American companies will lose their position at the global stage.
Meanwhile, the US Congress recently proposed stationary transparency and accountability for better ledger economic (stable) actions in the House, and two new stability bills established and guided the Stablecoins Act in the Senate.
They aim to establish clearer regulatory guidelines for Stablecoin publishers, and to maintain certain levels of reserves and require that they submit monthly certifications from top executives. The bill sees it as a step towards justifying the $23 billion stubcoin market, but critics worry it could impose unnecessary barriers to non-US companies.
Generally, the legislative process involves amendments before the law reaches the president’s desk. However, when enacted in its current form, experts believe that these regulations could affect the reserve structure of the tether and overall market stability.
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A crypto journalist with over five years of experience in the industry, Perth has worked with leading media outlets in the Crypto and Finance world, gathering experience and expertise in this field after surviving the bear and bull market for many years. Perth is also the author of four self-published books.
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