Tether Bets on U.S. as Senate Nears First Stablecoin Law

Tether, the issuer of the world’s largest stablecoin USDT, plans to launch a new stablecoin tailored for the U.S. market, as the GENIUS Act, Washington’s first serious attempt at stablecoin regulation, nears a final Senate vote.

New Stablecoin, New Rules

In his interview with Bloomberg, Tether’s CEO, Paolo Ardoino, confirmed that Tether’s planned U.S. stablecoin would feature different functionalities from USDT to remain competitive in the U.S. economy

Ardoino did not reveal any specific details, except that before launching Tether’s U.S.-specific stablecoin, the company wants the GENIUS Act to be passed to ensure regulatory clarity.

On May 19, 2025, the U.S. Senate advanced the GENIUS Act, a bipartisan bill that would establish the first federal regulatory framework for stablecoins.

The legislation requires stablecoin issuers to maintain full reserves and comply with anti-money laundering regulations. It also places limits on issuance by large tech firms and foreign entities. A final vote is expected after Memorial Day on May 26.

Ardoino expressed support for the legislation, noting that while the U.S. already has a highly efficient payment infrastructure, a stablecoin built for the domestic market would require a distinct approach.

USDT to Remain a Tool for the Unbanked

Tether said USDT will continue serving regions with limited banking access, especially in Africa and parts of Asia.

The company claims over 420 million users rely on USDT in developing countries, with 37% using it to protect against local currency instability.

Trump Ties Raise Red Flags

Tether’s deepening ties to U.S. President Donald Trump-linked ventures are drawing scrutiny

Earlier this month, Tether invested $775 million in Rumble, a right-leaning YouTube alternative with close ties to Trump Media & Technology Group (TMTG), the parent company of Truth Social, founded by Donald Trump.

Rumble provides cloud infrastructure and streaming support for Truth Social and has frequently been used by Trump and his campaign for broadcasts and messaging.

The spotlight intensified when Donald Trump named Howard Lutnick, CEO of Cantor Fitzgerald, which manages Tether’s reserves and holds a 5% stake, as his pick for Secretary of Commerce.

Critics warn that these political affiliations could compromise regulatory neutrality and raise serious concerns about conflicts of interest.

On the Flipside

• Tether’s transparency remains under scrutiny. The company has never undergone a full, independent audit despite managing over $150 billion in assets as of today.
• Tether is focusing on emerging markets and U.S. regulation as MiCA limits USDT’s reach in the European Union.

Why This Matters

Tether’s push into the U.S. market aligns with emerging stablecoin regulations and reflects a shift in strategy as global rules evolve. Its ties to Trump-linked ventures raise concerns about conflicts of interest and regulatory integrity.

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