While bolstering Tether’s stablecoin USDT as the most successful tool for US Dollar hegemony and distribution across emerging markets, Tether CEO Paolo Ardoino has called out competitors for trying to sabotage Tether.
In a lengthy post on X on 25 February 2025, Ardoino said, “While our competitors business model should be to build a better product and even bigger distribution network, their real intent is “Kill Tether.”
“Every single business or political meeting that they have culminates with this intent,” he added. “While might seem an overstatement, it’s a fact and it’s being reported independently by hundreds of people inside and outside the digital assets industry in touch with the US administration.”
As the US Congress deliberates on new stablecoin legislation, Ardoino has raised concerns about what he perceives as deliberate attempts by competitors to undermine Tether’s dominance in the stablecoin market.
Ardoino’s remarks come in response to growing speculation about a forthcoming stablecoin bill that could significantly impact international issuers like Tether.
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Ardoino Alleges “Regulatory Capture”
I don’t comment directly on regulation much but I would like to flag an emerging regulatory battle that is happening in D.C.
The soon-to-be revealed stablecoin markup apparently has requirements to shut off access to the treasury market to centralized international stablecoin…
— Vance Spencer (@pythianism) February 24, 2025
The controversy was sparked by Vance Spencer, co-founder of Framework Ventures, who warned about a “soon-to-be-revealed” stablecoin bill that could restrict offshore stablecoin issuers from accessing US Treasury markets.
Spencer criticized this move as an example of “regulatory capture,” where US-based players allegedly use legislative influence to disadvantage foreign competitors. He argued that such measures would harm the global dominance of the US dollar. It would alienate international stablecoin issuers like Tether.
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Tether Clashes With JPMorgan Over Bitcoin Sale Suggestion
JPMorgan analysts believe that Tether will have to sell some of its assets in order to comply with US stablecoin regulations.
In fact, the analysts suggested that Tether sell Bitcoin, precious metals, corporate paper, and secured loans. Tether being the largest stablecoin company could find itself in trouble over newly introduced regulations.
The STABLE Act sets stricter reserve standards and lets states regulate. Meanwhile, the GENIUS Act requires federal oversight of large issuers and allows the use of a wider range of reserve assets.
Digital Assets Subcommittee Chairman Bryan Steil commented on the new stablecoin regulations and said, “By implementing a clear regulatory structure for payment stablecoins, we can support continued innovation, bolster the US dollar’s position as the world’s reserve currency, and protect consumers and investors.”
The JPMorgan analysts further said, “US stablecoin regulations requiring more transparency and frequent reserve audits pose additional challenges to Tether.” According to the analysts, 34% of Tether’s reserves would be noncompliant.
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The post Paolo Ardoino Says Competitors Want To “Kill Tether,” Criticizes New Stablecoin Bill appeared first on 99Bitcoins.
