TL;DR
- Paolo Ardoino, Tether’s CEO, warns that competitors are trying to curb USDT’s growth through regulatory influence instead of improving their own products.
- A proposed bill could prevent foreign stablecoin issuers, like Tether, from accessing U.S. Treasury bonds, impacting the liquidity of the digital dollar.
- Experts warn that restricting foreign companies from purchasing U.S. debt could weaken the dollar’s global dominance and destabilize the crypto market.
Tether CEO Paolo Ardoino has sounded the alarm over what he describes as a deliberate attempt by competitors to hinder USDT’s growth through legal and regulatory tactics rather than fair competition. According to Ardoino, rival stablecoin issuers are engaging in high-level political lobbying in the U.S. with a single goal: weakening Tether’s presence in the global market.
In a post on X, the executive emphasized that instead of focusing on innovation or expanding their distribution networks, some stablecoin issuers are pushing for regulations specifically designed to hurt USDT. He called this a form of “lawfare”, using legal and political means to suppress a stronger competitor when traditional market strategies fail.
Stablecoins have played a crucial role in reinforcing the dollar’s dominance in emerging markets, providing financial stability and accessibility in regions with weak or volatile economies. However, this growing influence has made Tether a target, according to Ardoino, as competitors seek to leverage government intervention to level the playing field in their favor.
Banning Access to U.S. Treasuries: A Counterproductive Move?
The controversy escalated after reports surfaced that an upcoming stablecoin bill could ban international issuers from purchasing U.S. Treasury bonds. If passed, this measure would restrict Tether and other offshore firms from using these assets as reserves, potentially damaging their liquidity and the broader crypto economy.
The news has sparked strong reactions within the crypto community. Vance Spencer, CEO of Hiframework, called the proposed restriction “insane”, arguing that it represents an attempt by U.S.-based stablecoin issuers to monopolize the sector. Meanwhile, investor Nic Carter pointed out that the global financial system thrives on foreign demand for U.S. debt.
Tether is currently the 18th largest holder of U.S. Treasury bonds, with over $115 billion in these assets. With 35 million new wallets being created every quarter and more than 400 million users worldwide, Ardoino insists that cutting off foreign stablecoin issuers from U.S. debt markets would do more harm to the dollar’s influence than to USDT itself.
As the crypto industry mobilizes to defend decentralization and fair competition, the battle over stablecoin regulation is far from over.
