He Yi, a Fox Business reporter, tweeted on the 15th that Tether, the issuer of the stablecoin USDT, has held talks with U.S. congressional members to help develop federal-level stablecoin regulatory policies.
According to the information, the purpose of Tether's talks this time is to collaborate with Bryan Steil and French Hill, the chairman and member of the House Financial Services Committee's Digital Assets Subcommittee, and provide feedback on the "Stablecoin Transparency and Accountability Act" (STABLE Act) they proposed on February 6.
In addition, Tether's CEO Paolo Ardoino also mentioned in an interview that Tether will provide opinions to the sponsors of two other stablecoin bills (the GENIUS Act and the Waters proposal). He emphasized:
We will not abandon Tether and let it perish just because it does not adapt to U.S. regulations. However, there is still a lot of uncertainty, and we hope to have our voice heard in the legislative process.
Terrett then mentioned that for Tether, complying with the proposed regulatory requirements means the company will need to undergo a full monthly audit by a U.S. accounting firm and ensure its reserve assets are maintained at a 1:1 ratio, and these assets must be pre-approved by the regulatory authorities.
JPMorgan: 66-83% of Tether's Asset Reserves are Compliant
However, JPMorgan analysts recently pointed out that in order to comply with the stablecoin regulations proposed in the U.S., Tether may need to sell its non-compliant stablecoin collateral assets.
The U.S. has already introduced two stablecoin bills, the House's "Stablecoin Transparency and Accountability Act" (STABLE Act) and the Senate's "Guidance and Building U.S. Innovation and Next-Gen Financial Services Act" (GENIUS Act), to regulate stablecoin issuers, including licensing requirements, risk management rules, and 1:1 asset reserve requirements.
According to the STABLE Act, only 66% of Tether's asset reserves are compliant, while under the GENIUS Act, the compliance rate is slightly higher at 83%. Analysts believe that if either of these bills is passed, Tether will need to restructure its reserves and shift assets to U.S. Treasuries and other more liquid assets.
Regarding JPMorgan's analysis, Tether CEO Paolo Ardoino immediately rebutted with Tether's high net worth and profitability:
Even in the most extreme scenario, JPMorgan has overlooked the fact that the Tether group has over $20 billion in equity in other highly liquid assets, as well as the fact that it generates over $1.2 billion in profits per quarter through U.S. Treasuries.
Fed Governor: Stablecoins Help Maintain the Global Dominance of the U.S. Dollar
On the other hand, according to a report by Cointelegraph, Fed Governor Christopher Waller said in an interview on the 6th that U.S. dollar stablecoins will expand the influence of the U.S. dollar globally, further consolidating the dollar's status as the standard for stablecoins.
It is understood that stablecoin issuers have become one of the largest buyers of U.S. Treasuries globally, as these companies over-collateralize their fiat-pegged tokens with government securities, thereby driving up demand for the U.S. dollar and extending its influence as the standard for global capital markets.
Waller further stated that banks and non-bank institutions should be allowed to issue their own stablecoins and collaborate with state regulators to ensure compliance. However, Waller also expressed concerns about the risks of stablecoins, such as de-pegging events and the fragmentation of the stablecoin ecosystem.
