Paolo Ardoino: “Changes to the Stablecoin Bill Could Affect Tether!”

Jakarta, Pintu News – Paolo Ardoino, CEO of Tether, recently expressed his concerns over proposed changes in the stablecoin legislation being discussed on Capitol Hill.

According to Ardoino, these changes seem designed to isolate Tether from the stablecoin market in the United States.

Vance Spencer, co-founder of Framework Ventures, highlighted that the changes might limit international stablecoin issuers’ access to the US Treasury market.

Check out the full news below!

Bill Changes and Impact on Tether

The proposed changes in the stablecoin bill could affect Tether and other foreign-based issuers’ access to key reserve assets such as Treasury Bills.

Tether USDT->Current USDT PriceRp 0Market Cap-Trading Volume-Circulating Supply- is one of the largest stablecoins held in US dollars. It relies heavily on Treasury Bills for most of its reserves. If this access is cut off, it could significantly change the dynamics of the stablecoin market.

These changes also reflect broader concerns about US entities’ influence and control of the stablecoin market. Circle, Tether’s main competitor and second-largest stablecoin issuer, has begun relocating to New York, which may give them an advantage in the face of these regulatory changes.

Read also: Matt Hougan’s Prediction: “Bitcoin (BTC) will recover, while Memecoin slumps!”

Criticism of the Proposed Bill

Spencer strongly criticized the proposed changes, calling it a blatant “regulatory capture” attempt by US players carried out at the expense of US national interests.

He says this will benefit some specific entities while harming others, particularly Tether. This criticism highlights the growing battle between major companies in the stablecoin industry.

Tether’s CEO, Paolo Ardoino, responded that competitors use political connections to isolate Tether from the US stablecoin landscape. While Ardoino didn’t directly name the company, many suspect that Circle may be involved in the effort.

Read also: Bernstein: “Memecoin Crypto Market Will Switch to Tokens with Utilities”, Here’s the Analysis!

Broader Implications of the Bill Changes

If these changes in the stablecoin bill are enacted, the impact will be felt not only by Tether but also by the global stablecoin market as a whole. Over the past decade, Tether has built an extensive physical and digital distribution network, spanning thousands of kiosks in Africa and South America to digital remittances.

Restricting access to reserve assets like Treasury Bills could force Tether and other issuers to find alternatives, which may not be as efficient or secure as Treasury Bills. It could also reduce the US dollar’s dominance as the world’s reserve currency, which has been strengthened by the spread of stablecoins like Tether (USDT).

Conclusion

With the proposed changes in the stablecoin bill, the future of Tether and other stablecoins may face new challenges. While there have been concerns about Tether being “killed”, the company has shown resilience and adaptation in the face of previous challenges. In any case, these changes in regulation will play a key role in determining the future direction of the stablecoin industry.

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Reference

• Crypto News. Tether’s Paolo Ardoino: Stablecoin Bill Changes Aim to Kill Tether. Accessed on February 26, 2025
• Featured Image: Cryptoslate