tl;dr
Tether CEO Paolo Ardoino announced the company's openness to creating a separate stablecoin for the U.S. market, distinct from its existing USDT, which primarily serves emerging economies. Tether supports the U.S. GENIUS Act stablecoin legislation and plans to comply with its requirements, viewing i...
Tether CEO Paolo Ardoino announced the company’s intention to issue a separate stablecoin tailored specifically for the U.S. market, distinct from its flagship USDT token. While USDT will continue its primary focus on emerging economies, where it serves as a digital dollar for savings and remittances among unbanked populations, the new domestic stablecoin will feature characteristics designed to meet U.S. market needs.
Ardoino emphasized USDT’s vital role in supporting over 420 million users in developing countries, particularly for preserving savings amid local currency depreciation and facilitating cross-border remittances. He noted that approximately 37% of USDT users employ it for savings purposes. However, he explained that with the diverse payment infrastructure in the United States, stablecoins like USDT are less critical for enhancing payment efficiency domestically.
Regarding regulation, Tether supports the U.S. GENIUS Act, which aims to provide clarity and set a 100% reserve requirement for stablecoins, favoring U.S. treasuries as reserves. Ardoino prefers the GENIUS Act's framework over Europe’s MiCA regulations, which mandate a 60% cash deposit reserve in European banks — a stipulation he considers problematic. He envisions compliance with the GENIUS Act both as a foreign issuer (for USDT) and as a domestic stablecoin issuer, but stresses the importance of the legislation’s final passage before advancing the U.S. stablecoin project.
The U.S. Senate is progressing toward final passage of the GENIUS Act, with critical cloture and procedural votes completed and a final floor vote expected after the Memorial Day recess. Ardoino regards this legislation as essential for fostering stablecoin innovation and regulatory certainty in the United States.