The largest stablecoin issuer, Tether, is considering leveraging the United States’ anticipated favorable regulatory environment under Donald Trump’s upcoming administration. The company’s CEO, Paolo Ardoino, revealed that Tether is exploring opportunities to expand its presence in the U.S. market.
Tether Considers U.S. Expansion
Ardoino cited the prospect of improved regulatory clarity and the company’s recent $775 million investment in US-listed video-sharing firm Rumble as key drivers behind Tether’s U.S. expansion plans. He believes the move will strategically bolster the company’s growth prospects and cement its position as one of the leading players in the crypto market.
Nonetheless, Tether’s U.S. expansion plans are cautiously undertaken as the company seeks to navigate complex regulations. Ardoino emphasized the need for clear guidance and regulatory clarity before making significant moves. In line with this, the firm has appointed former PayPal executive Jesse Spiro to lead its government relations efforts.
Despite its cautious approach, Tether has a significant stake in the U.S. market. The company’s U.S. Treasury holdings have generated substantial profits amid surging crypto prices. Its USDT stablecoin, backed by a $137 billion reserve, has also contributed to the company’s success.
Regarding the company’s progress, Ardoino expressed optimism about Tether’s growth, citing its expected profits of over $10 billion in 2024. The firm’s quarterly attestation on its reserves, scheduled for release later this month, is expected to provide further insight into its financial performance.
Expansion Amid Regulatory Hurdle
Tether is considering expanding its operations in the U.S. as it faces regulatory hurdles in Europe. The firm has been struggling to comply with the European Union’s new regulations, known as Markets in Crypto-Assets (MiCA). Coinbase and other exchanges have delisted USDT for its EU customers, citing compliance issues.
The stablecoin issuer has already shut down its Euro Tether (EURT) operations due to the challenges posed by MiCA regulations. The company’s CEO stated that the firm will focus on other initiatives until more favorable regulatory standards are established within the EU.
Meanwhile, Tether’s global expansion plans include establishing a new headquarters in El Salvador. The company plans to build a skyscraper, Tether Tower, in the capital city of San Salvador, which would create job opportunities in the country.
