Tether, the largest stablecoin issuer with a market capitalization exceeding $142 billion, is reportedly engaging with US Congressional lawmakers to influence the development of stablecoin regulation at the federal level. Tether has been collaborating with Representatives Bryan Steil and French Hill, discussing various legislative initiatives, including two new stablecoin bills. CEO Paolo Ardoino emphasized Tether's commitment to adapting to US laws to ensure its survival amidst regulatory uncertainty, aiming to contribute to the legislative process. Compliance with US regulations may require Tether to perform regular audits and ensure one-to-one backing for its stablecoins. Federal Reserve officials have expressed the potential of US-pegged stablecoins to enhance the dollar's status as a reserve currency, recognizing the increasing role of stablecoin issuers as significant purchasers of US government debt. However, concerns remain regarding risks, such as stablecoin de-pegging events and fragmentation in the market.

Source 🔗