Michaela Alvez
Tether, the stablecoin issuer, has considered expanding its presence in the U.S., but CEO Paolo Ardoino emphasized a cautious approach as the company awaits regulatory clarity.
In a January 16 interview with Bloomberg TV, Ardoino said that the company is waiting for clearer regulatory guidelines before making decisions on expanding further. He stressed the importance of understanding the evolving legal landscape before taking any more steps.
Companies like Tether are expected to benefit from the incoming administration’s more crypto-friendly stance. It is “a great opportunity to start looking at the US environment and how it will change,” Ardoino stated.
This development comes as President-elect Donald Trump is anticipated to sign an executive order making cryptocurrency a national priority following his inauguration on January 20.
In October, Ardoino told attendees at the DC Fintech Week that the U.S. has been a leader in technological innovation across all sectors. However, he also noted that cryptocurrency regulations have not kept pace with this progress.
Tether To Exit EU?
Amid talks of Tether possibly expanding in the U.S., the future of Tether’s operations in European markets is uncertain as the European Union implements new stablecoin regulations, while USDT redemptions continue to rise.
The European Union’s Markets in Crypto-Assets (MiCA) regulations officially came into effect January 1, coinciding with a significant surge in USDT redemptions, which amounted to nearly $4 billion.
The redemptions marked the highest level since the onset of the ‘crypto winter’ in mid-2022, triggered by widespread revelations of fraud within thesector. This period of retreat culminated in the dramatic collapse of FTX and its associated market-maker Alameda Research in November 2022 — once the largest buyer of USDT.
Since the redemptions started, USDT had been trading just under its $1 peg, indicating growing uncertainty among customers about Tether’s prospects in the new MiCA-regulated landscape.
Under the new regulatory framework, stablecoins like USDT that are deemed “significant” must ensure that 60% of their reserve assets are held in cash and stored within banks in the European Union.
Read More
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
