Tether CEO Paolo Ardoino has accused competitors of attempting to sabotage the company. He claims they are pursuing a "Kill Tether" strategy rather than competing fairly. The allegations come as US lawmakers consider new stablecoin legislation.
In a February 25 post on X, Ardoino stated: "While our competitors business model should be to build a better product and even bigger distribution network, their real intent is 'Kill Tether.'" He added that "every single business or political meeting that they have culminates with this intent."
Ardoino defended USDT as "the most successful tool for US Dollar hegemony and distribution across emerging markets." He insisted his claims were not exaggerated. "While might seem an overstatement, it's a fact and it's being reported independently by hundreds of people inside and outside the digital assets industry in touch with the US administration," he wrote.
The controversy intensified following comments from Framework Ventures co-founder Vance Spencer. Spencer warned about an upcoming stablecoin bill that could prevent international issuers from accessing US Treasury markets. He characterized this as "regulatory capture" where US-based companies use legislative influence against foreign competitors.
Such measures would harm global US dollar dominance, Spencer argued. They would alienate international stablecoin issuers like Tether.
JPMorgan analysts have suggested Tether may need to sell assets to comply with new US regulations. Their recommendations include divesting Bitcoin, precious metals, corporate paper, and secured loans. The analysts claim 34% of Tether's reserves would not meet compliance requirements under proposed rules.
Two regulatory frameworks are under consideration. The STABLE Act would implement stricter reserve standards and allow state-level regulation. The GENIUS Act would require federal oversight of large issuers while permitting a broader range of reserve assets.
Digital Assets Subcommittee Chairman Bryan Steil has commented on the regulatory efforts. "By implementing a clear regulatory structure for payment stablecoins, we can support continued innovation, bolster the US dollar's position as the world's reserve currency, and protect consumers and investors," he said.
Meanwhile, reports indicate Tether's USDT may face delisting on Crypto.com. Nine other tokens could also be at risk as regulatory pressure mounts on the stablecoin sector.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.