Paolo Ardoino, CEO of the stablecoin issuer Tether (USDT), expressed optimism that the US will soon adopt sensible crypto regulations.
Ardoino appeared virtually to the DC audience during DC Fintech Week on Tuesday. He explained how Tether cooperates with global governments and how the firm looks forward to regulations.
He also stressed Tether’s commitment to compliance, highlighting the importance of regulations for increased consumer protection and innovation.
“I think it’s very, very important that sensible crypto regulations and stablecoin regulations will come to fruition in a way that will protect the end users.”
He added that these regulations would allow stablecoins to be a “lifeline” for people, who “don’t have the same opportunities as people in the U.S. and Europe.”
According to CryptoQuant, USDT accounts for about 71% of the USD-backed stablecoins market, having a market cap of $120 billion.
During his virtual speech, the Tether CEO underscored the company’s cooperation with law enforcement agencies in 45 countries. This includes the FBI and the U.S. Secret Service.
Ardoino also emphasised that Tether would prioritise combating illicit crypto use and safeguarding blockchain-based payment facilities.
Tether’s Criticism Over Lack of Transparency
The stablecoin giant faced criticism from a consumer watchdog that flagged Tether for lack of transparency. In September, Consumers’ Research, a consumer protection group, released a report that claimed Tether “failed to undergo an independent audit.”
“Tether’s continual failure to undergo an independent audit raises a distressing red flag for the company and its USDT product.”
The report also cited transparency issues and Tether’s situation during the collapse of FTX and Alameda Research.
Ardoino’s remarks come at a time when stablecoins are becoming increasingly important to institutions. Jeremy Allaire, CEO at the stablecoin issuer Circle, recently predicted that stablecoins will account for 10% of the global economy over the next 10 years.
Additionally, in Q2 2024, stablecoin transaction volume surpassed that of Visa ($8.5 trillion against Visa’s $3.9 trillion). This increase demonstrated their growing utility and acceptance.
USDT, which now has more than 330 million users, survived billions in redemptions in 2022, Ardoino noted. This accounts for over 10% of its reserves, which he described as “a type of pressure that almost no bank was able to survive.”
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