Tether is 'doubling down' on communication and transparency, CEO Paolo Ardoino says

Tether CEO Paolo Ardoino asserted that the world's largest stablecoin is safe and says the company is doubling down on communication and transparency.

"Compliance is very, very important," Ardoino said Tuesday at the 8th Annual Washington DC Fintech Week. "So in late December, I became the CEO of Tether and I wanted to reinforce that mission — that didn't just start last year to be clear. Tether has always been a force of compliance. I understand that publicly, it didn't appear like that, at least in the U.S."

"I think communication and transparency is truly important and we are actually doubling down on that," Ardoino added in a virtual conversation with Dr. Christopher Brummer, founder of DC Fintech Week. He is also a Williams Sesquicentennial Professor of Financial Technology at Georgetown Law.

Tether has faced scrutiny over the years over its stablecoin USDT, which is pegged to the U.S. dollar. The U.S. Commodity Futures Trading Commission said Tether made "untrue or misleading statements and omission of material fact" related to USDT. The regulator said Tether falsely claimed USDT was fully backed by U.S. dollars.

U.S. lawmakers have also scrutinized Tether and called on the U.S. Justice Department to investigate the firm over its possible involvement in illicit finance. Tether has said it is working with global law enforcement to deter illicit activities.

Ardoino also said Tether has more Treasury bills "compared to" the United Arab Emirates, Australia and Spain. Treasury bills are viewed as being a low-risk investment. Tether also has "decentralized the decision making of selling the U.S. debt," Ardoino added.

"We are finding hundreds of millions of new buyers of U.S. debt because, through us, we can expose these emerging markets to the best currency in the world, and in that process, we are purchasing immense quantities of U.S. debt," Ardoino said.

Regulations

Ardoino's appearance at DC Fintech Week comes shortly after multiple exchanges prepare to delist Tether's products following the publication of the Europe Union's Markets in Crypto Assets guidelines. Under the framework, stablecoin issuers have to obtain e-money authorization in at least one EU member state and adhere to strict rules related to their backing treasury assets.

Ardoino said the firm is in favor of regulations, but criticized MiCA's requirements around reserves.

As for the U.S., Ardoino urged for "sensible" crypto and stablecoin regulations that grow technology and "protects the end users."

Lawmakers in Washington have been working on a bill to create a regulatory framework for stablecoins since 2022. Legislation advanced out of the Republican-led committee last year but has not gained traction and has been met with concerns over how much control to give state regulators and the Federal Reserve.