Tether shifts focus abroad as US stablecoin bills rise

Tether Holdings CEO Paolo Ardoino announced the company will focus on markets outside the US, as Congress advances new stablecoin regulations.

The Genius Act, supported by the crypto industry, has moved through the Senate, while a separate bill from the House Financial Services Committee is still awaiting a full vote.

Ardoino said Tether is monitoring how the Genius Act treats foreign versus domestic issuers.

He emphasized that while Tether aims to comply with regulations, its main focus is serving international markets.

Tether, based in El Salvador, issues USDT, the world’s largest stablecoin, holding over 60% market share.

Its reserves include US-compliant assets like cash and short-term treasuries, though others like bitcoin and secured loans may not meet proposed standards.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Stablecoin regulatory divergence creates a two-track global market

Tether’s strategic positioning highlights an emerging divide in the global stablecoin landscape between highly regulated U.S. markets and less regulated international jurisdictions.

While advancing U.S. legislation like the Genius Act requires full backing and compliance with anti-money laundering regulations, Tether continues prioritizing its users in emerging markets where banking alternatives are limited.

Tether CEO Paolo Ardoino explicitly stated that “the main interest will remain outside of the U.S.” even as regulatory frameworks advance, signaling a deliberate geographic focus despite holding reserves that would largely comply with proposed U.S. rules.

This divergence is reflected in market dynamics, with USDC growing from $34.5 billion to $39.7 billion in Q1 2025 by emphasizing regulatory compliance, while Tether maintains dominant market share despite slight decreases from $77.2 billion to $74.4 billion.

The trend suggests stablecoins are developing along two distinct paths: those prioritizing regulatory alignment for institutional adoption versus those serving global markets where alternative financial infrastructure is lacking.

2️⃣ Tether’s evolution from regulatory controversy to strategic compliance

Tether’s approach to regulation reflects a calculated evolution from past controversies to selective compliance that maintains its market dominance.