Tether Weighs New U.S. Stablecoin as Congress Advances Crypto Legislation

Tether is exploring the launch of a U.S.-based stablecoin designed for institutional use, according to CEO Paolo Ardoino. The company’s decision follows momentum in Congress to pass a national stablecoin framework

In an interview with The Block, Ardoino said the proposed coin would differ from Tether’s current offerings, which are mainly used in developing markets and retail trading. Instead, the new product would focus on financial institutions needing faster, more efficient settlement tools.

“This would be tailored to meet the needs of large-scale, regulated institutions with very different infrastructure requirements,” Ardoino said. Tether currently does not serve U.S. customers.

The move comes as the U.S. House and Senate debate two competing proposals: the STABLE Act and the GENIUS Act. Both aim to define how stablecoin issuers operate, hold reserves, and interact with financial institutions. President Donald Trump urged lawmakers to pass a final version by August.

Tether, which launched USDT in 2014, holds the largest share of the global stablecoin market, with over 145 billion tokens in circulation. Still, the company faced pressure over its lack of a full independent audit — a gap CEO Ardoino said they are working to close.

The firm recently brought on Simon McWilliams as chief financial officer to push for an audit from one of the Big Four firms. Quarterly attestations from BDO Italia remain its current form of reporting.

Tether’s primary rival, Circle — the issuer of USDC — already works with Deloitte for its audits and operates actively in the U.S. With Circle preparing for a public listing and lawmakers drafting new rules, Tether’s latest move appears focused on not falling behind in what could become a newly regulated market.

Jeremy Allaire, co-founder of Circle, said he believes stablecoin issuers worldwide should be required to register with US authorities, regardless of where they operate.

Allaire argued that firms issuing US dollar-pegged stablecoins, like Circle’s USD Coin, should not be allowed to bypass American regulations while still serving US customers.

Meanwhile, Tether is facing mounting pressure. Tether CEO Paolo Ardoino claimed that both competitors and political forces are actively working to push Tether out of the market. He accused rivals of prioritizing efforts to “kill Tether” over improving their own products.

Tether has already been excluded from the list of approved stablecoin issuers under the European Union’s Markets in Crypto-Assets (MiCA) framework. Major exchanges like Kraken and Crypto.com are preparing to delist USDT and other non-compliant stablecoins in the European market in the coming months.

As the issuer of USDC, the world’s second-largest stablecoin, Circle stands to benefit from any regulatory clarity that allows financial institutions to integrate digital assets more freely. Pegged to the U.S. dollar, USDC is currently ranked as the eighth-largest cryptocurrency by market value.