Leading stablecoin issuer Tether is actively interacting with US legislators to help create government rules on digital assets. According to reports, the corporation is working with important congressional members to help create new laws that might affect the stablecoin sector.
“We are dedicated to operating inside the legal system and guaranteeing that our voice is heard during the legislative process,” Ardoino said. “There’s still a lot of uncertainty, but we won’t step aside and let Tether fade away due to legislative changes.”
Compliance with changing US rules would mean Tether keeping a one-to-one backing of its stablecoin assets and doing monthly reserve audits via an American accounting firm. These measures aim to ensure transparency and confidence in the digital asset space.
Tether’s proactive approach is in line with US authorities, like the Securities and Exchange Commission (SEC), who intensify conversations with business leaders to handle issues regarding stablecoins and their possible hazards. The Trump government has also supported bringing stablecoin activities onshore, thereby driving changes in regulations.
Christopher Waller, governor of the Federal Reserve, has discussed how stablecoins help the US dollar be more widely used worldwide. “Stablecoins could help the dollar be more widely used and improve its standing as the world’s reserve currency,” Waller said. Furthermore, as he observed, significant purchases of US government debt by stablecoin issuers supported the financial system of the nation.
Notwithstanding the advantages, Waller advised that regulatory control is required to reduce hazards such as depegging incidents and market fragmentation. He underlined the need for a mixed strategy that guarantees stability in the financial ecosystem and stimulates creativity.
Stablecoins are becoming ever more important parts of the digital economy. They provide possible advantages for companies and consumers, help with cross-border payments, give financial stability in areas with excessive inflation, and Emphasizing the need for consumer protection and financial stability, Federal Reserve Chair Jerome Powell has also noted the need for a clear regulatory framework for stablecoins.
Tether’s interaction with US legislators shows its dedication to adjusting to new regulations while keeping its strong presence in the stablecoin market while regulatory talks last.
