Tether, the cryptocurrency giant, is planning a major shift in its strategy by developing a new stablecoin specifically for the US market. CEO Paolo Ardoino explained that they will build this new coin from scratch, ensuring it meets US regulatory standards “by design”. This marks a departure from their existing USDT stablecoin, which has long dominated global crypto trading but faces increasing scrutiny in the US.
Currently, USDT holds significant influence in emerging markets like Latin America and Asia. However, the company acknowledges that this will likely see limited success in the US and Europe going forward due to tightening regulations. Tether’s goal is clear: launch a stablecoin built for transparency and regulatory compliance in the US market.
This new coin aims to address the concerns raised by regulators, including when it comes to registering as a security under the SEC guidelines. The SEC recently outlined its stance on stablecoins that aren’t classified as securities and requires them to undergo registration procedures before being legally offered in the US.
Tether sees this new development as an opportunity to gain regulatory approval, build trust with US institutions, and potentially expand within the US market.