The United States is behind the curve on crypto regulations but could begin to shape up laws after the elections, says Paolo Ardoino, CEO of the largest crypto stablecoin issuer, Tether.
“There is no place like the US,” Ardoino said during an Oct. 22 virtual appearance at the DC Fintech Week conference. “The US has always been leading the technological development in every single field.”
“This is the first time in history that I see the US dropping the ball,” he added concerning the country’s approach to crypto regulation.
The US crypto industry has lobbied for crypto-specific regulations, claiming the technology doesn’t fit with existing finance industry rules. Some have even blamed a lack of regulation for causing an exodus of crypto firms from the country. Ardoino added:
“Whoever will win the elections, I think it is very, very important that crypto regulation, sensible crypto regulations, and stablecoin regulations will come to fruition in a way that will protect the end-users.”
“That is my wish list,” he added. “The US has huge importance in this dialogue. Everyone, every single regulator in the world, will look at the US for the right regulation.”
US crypto players have spent at least $130 million in a bid to influence this election cycle, with the money mostly going to backing Republicans in tight Senate and House races.
Republican presidential candidate Donald Trump has long included passing crypto-friendly laws as part of his campaign promises, while Democrat rival Kamala Harris later unveiled support for crypto in her pitch to Black male voters.
Ardoino said the US passing rules for crypto and stablecoins, including for his company’s Tether USDT
$0.9991, will help it continue to be “very much the lifeline for hundreds of millions of people that don’t have the same luck and the same opportunities for people living in the US and Europe.”
Tether “doubling down” on transparency
The Tether boss also said his company is “doubling down” on communication and transparency, with the company the subject of US regulatory scrutiny in the past.
“Compliance is very, very important,” Ardoino said, adding:
“Tether has always been a force of compliance, and I understand that publicly. It never — or didn’t appear — like that, at least in the US.”
“I want to be open and want to be transparent about that, about the issues. I think communication and transparency is truly important, and we are actually doubling down on that,” he said.
In 2021, the US Commodity Futures Trading Commission fined Tether $41 million, saying it made “untrue or misleading statements” about the assets backing for its USDT token, which wasn’t “‘fully-backed’ the majority of the time.”
US lawmakers have also called on the Justice Department to investigate Tether’s alleged involvement in illicit finance, which Tether has denied, and pointed to its involvement in helping authorities.
