Tether’s Bold Move: Will Trump’s Inauguration Ignite a Crypto Revolution?

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The leading stablecoin issuer, Tether (USDT), is contemplating a measured entry into the U.S. market as it awaits more defined regulatory guidelines. In a conversation with Bloomberg TV on January 16, Tether CEO Paolo Ardoino expressed that any expansion would depend on the developing regulatory structure under the incoming Trump administration.

It’s anticipated that President-elect Donald Trump will issue an executive order shortly following his inauguration in January, which classifies cryptocurrencies as a significant national concern. Ardoino voiced enthusiasm, describing this move as “an excellent chance to scrutinize the U.S. landscape and understand how it might evolve.

Even though Tether is careful in its approach, it acknowledges the U.S. as a world pioneer in technological advancements. However, Ardoino has previously voiced criticism towards the country for being behind in cryptocurrency regulations. He described this as “an unprecedented instance where I see the U.S. missing the mark.

Significantly, Tether has encountered significant obstacles in the U.S., primarily due to accusations about insufficient transparency regarding its reserve holdings. In the year 2021, the firm reached a settlement with American authorities for $41 million, following allegations it had misrepresented its reserves.

Lately, Tether has been intensifying its advocacy work in the area. Just last month, they brought on board Jesse Spiro, a former PayPal executive, to manage their government relations. As per Ardoino’s statement, these initiatives underscore Tether’s dedication to enhancing its reputation within the U.S market.

Major Stablecoin Adoption Ahead?

The push for controlling digital currencies known as stablecoins in the United States is anticipated to gather speed under the new government. Legislation put forward by Senators Cynthia Lummis and Kirsten Gillibrand seeks to create a defined legal structure, which could bring advantages to companies issuing stablecoins such as Tether.

In Europe, fresh rules for digital currencies known as stablecoins have been implemented under the Markets in Crypto Assets (MiCA) legislation. In response, Tether decided to stop issuing its euro-linked EURt stablecoin starting from November.

Stablecoin Market Grows

2024 saw a significant boom in the stablecoin market, with investors progressively utilizing these digital assets to capitalize on lucrative prospects within Decentralized Finance (DeFi) for higher returns.

Tether is on track to exceed its projected 2024 profit of $10 billion, with earnings already reaching $7.7 billion by the close of Q3. Furthermore, the overall stablecoin market has surpassed a market capitalization of $200 billion by the end of the year, currently standing at approximately $214.75 billion.

Tether’s USDT continues to reign supreme in the stablecoin market with a staggering $137 billion market cap, although it experienced a minor 2.15% dip due to regulatory concerns surrounding the EU’s MiCA framework. Conversely, Circle’s USDC has demonstrated significant growth, climbing by 9.5% over the past month, reaching a market cap of $46 billion. Collectively, these two titans of the stablecoin sector control approximately 86% of the entire stablecoin market capitalization.

In December, Tether was featured prominently due to a strategic investment worth $775 million in the video-sharing platform Rumble. As Ardoino stated on X, this investment aims to uphold “the right to free expression”.

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2025-01-17 13:39