Tether's CEO, Paolo Ardoino, recently spoke to an audience in the U.S. during DC Fintech Week. He participated via video link and discussed how his company collaborates with law enforcement.
Ardoino expressed hope for sensible regulations around cryptocurrency and stablecoins in the U.S. He said, "There is no place like the U.S." He believes that these regulations will protect users while allowing innovation to flourish.
As the top global issuer of stablecoins, especially USDT, Tether plays a crucial role in the market. Stablecoins help maintain a steady value, usually pegged to the U.S. dollar. Ardoino highlighted Tether's commitment to working with government agencies, noting partnerships with law enforcement in 45 countries, including the FBI and Secret Service.
On his 40th birthday, he shared that Tether managed to handle billions in redemptions during 2022—over 10% of its reserves. This was a challenge that many banks struggled to meet. He defended Tether's reserves, which are over-collateralized at 104%, with 84% held in U.S. Treasuries. He argued this backing is of the highest quality, despite ongoing criticism about transparency.
"We are purchasing immense quantities of U.S. debt," Ardoino stated. He emphasized that a stablecoin issuer's main job is to maintain liquidity for redemptions. He compared Tether’s Treasuries portfolio to that of a mid-range country, suggesting it poses less risk to the U.S. financial system.
Ardoino also explained that Tether focuses outside the U.S. because Americans already have easy access to dollar-based assets. In contrast, people in other countries urgently need these resources, especially those facing high inflation. He expressed strong support for regulations that prioritize customer protection. He criticized European standards for stablecoins, pointing out their unique approach to cash reserves.
While Tether has faced scrutiny from law enforcement, this has not led to significant criminal cases in the U.S. During the conference, Rep. French Hill (R-Ark.) mentioned that legislation around crypto and stablecoins might gain traction in the remaining weeks of the congressional session. He noted that the Senate left room in a defense spending package for financial services provisions, although the outcome may depend on the upcoming presidential election.
If legislation doesn’t pass this year, Hill, who may take over as chairman of the committee next year, said that crypto will remain a top priority in the session starting in 2025.