CoinDesk reported that Tether CEO Paolo Ardoino, speaking via video at DC Fintech Week in Washington, stressed the need for clear crypto and stablecoin regulations in the U.S., predicting they would soon be implemented to protect users. He noted that U.S. rules would help stablecoins continue supporting people in regions with fewer financial opportunities than the U.S. and Europe.

Tether, the top stablecoin issuer globally with USDT, has been working to improve its reputation. Once seen as resistant to regulations, the company now highlights its cooperation with law enforcement in 45 countries, including the FBI and U.S. Secret Service. Ardoino, speaking on his 40th birthday, claimed no other financial firm has such a strong track record in this area.

Ardoino also addressed concerns about Tether’s reserves, saying the company’s 104% over-collateralization—mostly in U.S. Treasuries (84%)—allowed it to survive $10 billion in redemptions in 2022. He added that Tether’s holdings in U.S. debt rival those of some mid-sized countries but pose less risk to the market since they aren’t concentrated in a single entity.

While he supports regulations, Ardoino criticized certain European rules regarding stablecoins, arguing that Tether’s focus outside the U.S. is justified given the urgent need for dollar-based assets in countries with high inflation.

At the same event, Rep. French Hill (R-Ark.) discussed the potential for crypto and stablecoin legislation to pass during Congress’s “lame duck” session, depending on the outcome of the presidential election. If not, he emphasized that crypto regulation would be a priority for 2025, especially if he becomes chair of the Financial Services Committee following Rep. Patrick McHenry’s (R-N.C.) retirement.

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