Tether, the world’s largest stablecoin issuer with a market capitalization exceeding $142 billion, is actively working with U.S. lawmakers to help shape federal stablecoin regulations. As the regulatory landscape around digital assets continues to evolve, Tether is making its voice heard in key policy discussions.

Collaborating with Congress on the STABLE Act

According to Fox Business reporter Eleanor Terrett, Tether has been in discussions with Representatives Bryan Steil and French Hill—both of whom are leading efforts on the STABLE Act, introduced on February 6. In addition to contributing to this bill, Tether CEO Paolo Ardoino revealed that the company is also providing input on two additional stablecoin bills introduced by other lawmakers.

“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,” Ardoino emphasized. “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.”

The Compliance Challenge

For Tether to operate within proposed U.S. regulations, it would need to conduct monthly reserve audits via a U.S.-based accounting firm and maintain a strict one-to-one asset collateral for its tokenized fiat equivalents. These measures align with calls for greater transparency and accountability in the stablecoin market, which has come under increased scrutiny from regulators.

Crypto Industry and the SEC: A Broader Push for Clarity

Tether’s proactive stance comes at a time when other crypto industry leaders are meeting with the Securities and Exchange Commission (SEC) to address ongoing regulatory uncertainties. The discussions highlight the industry’s growing recognition that regulatory compliance is essential for long-term sustainability and mainstream adoption.

The Federal Reserve’s View on Stablecoins

Meanwhile, Federal Reserve Governor Christopher Waller has signaled a more favorable stance on stablecoins, acknowledging their potential to enhance the global dominance of the U.S. dollar. In a recent interview, Waller stated that U.S.-pegged stablecoins “will broaden the reach of the dollar across the globe and make it even more of a reserve currency than it is now.”

Stablecoin issuers, including Tether, have become some of the largest buyers of U.S. government debt, using government securities to overcollateralize their fiat-backed tokens. This trend has further strengthened the demand for the U.S. dollar in global markets.

However, Waller also cautioned against risks associated with stablecoins, such as depegging events and market fragmentation. He suggested that both banks and non-banks should be allowed to issue stablecoins, provided they work with state regulators to ensure compliance.

What’s Next for Tether and Stablecoin Regulation?

With mounting pressure from lawmakers and regulators, Tether’s engagement in the legislative process underscores its commitment to adapting to the evolving regulatory landscape. Whether these efforts will lead to a more structured and transparent stablecoin framework in the U.S. remains to be seen. However, one thing is certain—Tether is determined to play a key role in shaping the future of stablecoin regulation rather than being left behind.