Tether discusses the American regulators … Break point for stablecoins?

The regulations around the stablecoins are no longer a distant threat to the Kryptos issuers. They are now essential as a basic reality. In this uncertain climate, Thether, the leader of the sector with capitalization that exceeds $ 142 billion, decided not to remain a viewer. Rather than against US legislators, society seeks to consider the regulatory process. A strategic choice that could redefine the future of stablecoins and the entire crypto market in the United States.

Tether enters the legislative arena

For years, Tether has been developing in the regulatory gray region and juggling between the lack of criticized transparency and the massive acceptance of her USDT as a global legacy. In the face of an increase in legislative pressure in the United States, the company decided to actively participate in discussion about the future regulation of stablecoins. According to Fox Business, Tether cooperates with US legislators, especially representatives of Bryan Steil and French Hill, to influence a stable act, a key law in the regulation of the sector.

Tether, Paolo Ardoino, wanted to clarify the position of his business: “We do not intend to leave the US market. There are still many uncertainty about what happens and we want our voice to hear in this legislative process ”. The goal of Tether is therefore clear: not to have regulatory authorities define the rules of the game only, but rather to shape a framework that allows companies to remain competitive on the US market and at the same time meet new legal requirements.

Strategic problems and risks for pilgrimages

If Tether’s involvement in legislative discussions is evidenced by the change of posture, he also informs about the challenges that come to the company. In fact, adherence to US requirements will not be without consequences. One of the flag measures supposed by a stable law imposes a monthly audits from crypto reserves in Tether by an accounting company based in the United States, which is the main restriction of the company regularly pointing to the transparency of its reserves.

In addition to restrictions, the question of competition arises among stable emitters. Christopher Waller, the Governor of the Federal Reserve System, believes that Stablecoins “expands the range of US dollar around the world and strengthens his reserve currency”. Such a vision potentially opens the doors of the emissions of the stablecoins supported by the dollar by traditional banking institutions, which puts a cryptopojtop on the face of unprecedented competition. If large banks enter the Stabblecoins plant, a monopoly in the harness could be questioned, especially if institutional investors prefer regulated alternatives.

The future of Tether in the United States will depend on its ability to follow new rules without losing its competitive advantage. On the one hand, the playing of the game Crypto regulation could offer unprecedented legitimacy that would assure institutions and regulators. On the other hand, opening the market by traditional banking players could weaken its grip of a crypto ecosystem. Surrendering between regulators and Tether has just begun and its outcome will determine the future of USDT, but also the future of the whole Stablecoins market.

Luc Jose A.

Graduate of Science after Toulouse and holder of Blockchain Consultant Certification, published by Alyrou, joined the adventure of Cointtribuni. The general public about this constantly evolving ecosystem. My goal is to allow everyone to better understand blockchain and take the opportunity they offer. I try to provide an objective analysis of messages every day, decrypt trends on the market, hand over the latest technological innovations and introduce the economic and social issues of this revolution.

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The words and opinions expressed in this article are involved only by their author and should not be considered investment counseling. Do your own research before any investment decision.