Tether Eyes US Expansion as Trump Inauguration Nears | Coinspeaker
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Tether Eyes US Expansion as Trump Inauguration Nears

Tether is eyeing US expansion while awaiting regulatory clarity, ramping up lobbying efforts, and expecting record-breaking profits for 2024.

Anisha Pandey By Anisha Pandey Julia Sakovich Edited by Julia Sakovich Updated 3 mins read
Tether Eyes US Expansion as Trump Inauguration Nears
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Key Notes

  • Tether is considering cautious expansion into the US, pending regulatory clarity under the Trump administration.
  • The company recently intensified lobbying efforts in the region.
  • Tether is on track to exceed its 2024 profit forecast of $10 billion, with $7.7 billion already achieved by Q3.

Tether USDT $1.00 24h volatility: 0.0% Market cap: $141.66 B Vol. 24h: $52.30 B , the world’s leading stablecoin issuer, is considering a cautious expansion into the US market while waiting for clearer regulatory guidelines. In an interview with Bloomberg TV on January 16, Tether CEO Paolo Ardoino stated that any expansion move would hinge on the regulatory framework emerging under the incoming Trump administration.

President-elect Donald Trump is expected to sign an executive order soon after his January 20 inauguration, designating cryptocurrency as a national priority. Ardoino expressed optimism, calling this development “a great opportunity to start looking at the US environment and how it will change”.

Despite its cautious stance, Tether recognizes the US as a global leader in technological innovation. However, Ardoino has previously criticized the country for lagging in crypto regulation, calling it “the first time in history that [he sees] the US dropping the ball”.

Notably, Tether has faced major roadblocks in the US, particularly over allegations of lacking transparency in its reserves. In 2021, the company settled with US authorities for $41 million over claims it misstated its reserves.

Tether has recently increased its lobbying efforts in the region. In September, it hired former PayPal executive Jesse Spiro to lead government relations. According to Ardoino, these efforts reflect Tether’s commitment to improving its standing in the US market.

Major Stablecoin Adoption Ahead?

Efforts to regulate stablecoins in the US are expected to gain momentum under the new administration. Proposals by Senators Cynthia Lummis and Kirsten Gillibrand aim to establish a clear legal framework, potentially benefiting stablecoin issuers like Tether.

In Europe, new regulations for stablecoins are introduced as part of the Markets in Crypto Assets (MiCA) regulation. Tether responded by discontinuing its euro-pegged EURt stablecoin in November.

Stablecoin Market Grows

2024 was a massive growth year for the stablecoin market. Investors are increasingly leveraging stablecoins for high-yield opportunities in decentralized finance (DeFi).

Tether is poised to surpass its 2024 profit forecast of $10 billion, having already recorded $7.7 billion in profits by the end of the third quarter. The overall stablecoin market also saw its market cap surpass the $200 billion mark by the end of the year, currently sitting at $214.75 billion.

Tether’s USDT remains the leader in the stablecoin market with a $137 billion market cap, despite a 2.15% decline caused by regulatory uncertainties linked to the EU’s MiCA framework. Meanwhile, Circle’s USDC USDC $1.00 24h volatility: 0.0% Market cap: $56.02 B Vol. 24h: $6.31 B has shown major growth, rising 9.5% over the past month to reach a $46 billion market cap. Together, these two stablecoin giants dominate the sector, accounting for 86% of the total stablecoin market capitalization.

Tether also made headlines in December with a $775 million strategic investment in video-sharing platform Rumble, a move Ardoino described on X as supporting “freedom of speech”.

Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.

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Anisha Pandey

With a background in finance and a passion for innovation, Anisha has been covering the ever-evolving world of crypto for over four years. Her deep understanding of the crypto market have made her a trusted source for analysis and news. Whether it's dissecting the latest trends or decoding whitepapers, Anisha is dedicated to bringing clarity to the world of digital assets.

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