Tether, the world’s largest stablecoin issuer, is actively engaging with U.S. lawmakers to influence upcoming stablecoin regulations. The company has been in discussions with Rep. Bryan Steil and Republican Chair of the House Financial Services Committee, French Hill, regarding the STABLE Act. This bill seeks to enforce stricter requirements on stablecoin issuers, including mandatory asset backing and regulatory oversight from the Office of the Comptroller of the Currency.

According to FOX Business reporter Eleanor Terrett, Tether has been a key participant in discussions surrounding the bill. CEO Paolo Ardoino has expressed the company's commitment to adhering to U.S. laws while ensuring it remains a dominant force in the stablecoin market. Ardoino emphasized that Tether has no intention of bowing out of the U.S. market but will work to shape regulations to reflect industry needs.

If the STABLE Act is enacted, Tether will need to ensure its USDT token remains backed one-to-one by traditional fiat currency, U.S. Treasury bills, or central bank reserves. Additionally, Tether would be required to conduct monthly reserve audits through a U.S.-based accounting firm. The stablecoin issuer has faced long-standing criticism over its transparency, as it has never undergone a full audit despite providing quarterly financial attestations through BDO, a global accounting firm.

Analysts at JP Morgan suggest that Tether may need to liquidate some of its Bitcoin holdings to meet regulatory requirements. The bank estimates that the company currently holds only 66% to 83% of the necessary reserves to fully back its stablecoin supply. This potential restructuring could have significant implications for the cryptocurrency market.

Tether’s involvement in regulatory discussions underscores the growing importance of stablecoins in the financial system. Federal Reserve Governor Christopher Waller recently stated that stablecoins could strengthen the U.S. dollar’s dominance globally, provided that adequate regulations are put in place. Federal Reserve Chairman Jerome Powell has also voiced support for a comprehensive stablecoin framework.

In the past week alone, three separate stablecoin-related bills have been introduced in the U.S. House and Senate. Alongside the STABLE Act, the GENIUS Act—backed by Senator Cynthia Lummis—seeks to regulate stablecoins with a market cap exceeding $10 billion. Meanwhile, Democratic Representative Maxine Waters has proposed legislation involving oversight by the Federal Reserve, Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency.

With regulatory discussions gaining momentum, Tether remains committed to ensuring its voice is heard in shaping the future of stablecoin legislation. As policymakers refine their approach, Tether's engagement could play a crucial role in defining the compliance landscape for the entire industry.