- In a curious twist, Tether schmoozes with the Capitol’s finest to bend stablecoin rules to its will.
- SEC pokes and prods at digital darlings XRP, SOL, and DOGE, in a regulatory dance as old as time.
Oh, the irony! Tether, the grand poobah of stablecoins, is now playing nice with the very lawmakers it once scoffed at, all in a bid to mold federal stablecoin regulations into its own image.
It seems the company is cozying up to Representatives Bryan Steil and French Hill, working on the STABLE Act, introduced on the 6th of February. They’re also sprinkling their two cents on other stablecoin legislation. How generous!
The Tether CEO’s Grand Stand
And what does the Tether CEO, Paolo Ardoino, have to say about this sudden love fest with Uncle Sam? He’s all for it, naturally!
“We are going to work within the regulatory framework, and we are going to try to advise on every single one of these field proposals to make sure that our voice is heard.”
Translation: We’ll play by your rules, as long as we get to help write them. 😏
JPMorgan’s Crystal Ball
Tether, sitting pretty with over $114 billion in short-term Treasury bills, might soon have to rethink its strategy. JPMorgan’s soothsayers predict that regulatory changes could force Tether to dump its Bitcoin and gold reserves like yesterday’s news.
And if that’s not enough, Tether might have to switch from quarterly assessments by BDO to monthly audits by a U.S.-based firm. Talk about keeping your books in order!
But Ardoino isn’t having it. He claims JPMorgan’s analysis is all smoke and mirrors, a mere illusion of understanding.
“We are not going to just throw in the towel and let Tether die just for the sake of not adapting to U.S. legislation. But there is still a lot of uncertainty over what’s actually going to happen, and we want our voice to be heard in the legislative process.”
In other words, Tether’s not going down without a fight. 🥊
The Dollar’s Strong Arm
Meanwhile, Federal Reserve Governor Christopher Waller is singing the praises of U.S.-pegged stablecoins, saying they’ll make the dollar even more of a global big shot.
“Will broaden the reach of the dollar across the globe and make it even more of a reserve currency than it is now.”
It seems stablecoin issuers, by using government securities as collateral, are the dollar’s unexpected muscle, keeping it at the top of the currency food chain.
Waller is all for letting banks and non-banks issue stablecoins, as long as they play by the rules. But he’s also wary of the risks, like de-pegging events and a chaotic stablecoin market.
Crypto’s Regulatory Tango
As if on cue, the U.S. SEC is reviewing digital asset ETFs, including those for XRP, SOL, and DOGE. Eleanor Terret sums it up nicely:
“They have *acknowledged* that issuers are applying for a product that classifies XRP a commodity asset within a securities wrapper (the securities wrapper is the ETF itself), the same as $BTC and $ETH.”
So, as stablecoins and digital assets bask in the spotlight, regulatory clarity will be the key to their future. Will they dance with the traditional markets, or trip over their own feet? Only time will tell. 🕰️
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2025-02-16 14:21