US Crypto Laws Lag Behind but May Soon Change: Tether CEO Paolo Ardoin

Jimmy Aki
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On October 22, Tether CEO Paolo Ardoino stated that the US is falling behind in regulating the cryptocurrency industry. He believes that the upcoming November elections could pave the way for more robust regulations that will protect users and stabilize the crypto market.

US Crypto Regulations Lagging

Speaking at the DC Fintech Week conference, Paolo Ardoino emphasized that the country’s current approach to crypto laws is inadequate.

He said this is the first time he has witnessed the US “dropping the ball” on technological progress, specifically in crypto regulations. “The US has always been leading the technological development in every single field,” Ardoino noted, adding that the lack of specific crypto laws has created uncertainty in the industry.

The US crypto industry has long sought clearer guidelines, claiming that current financial regulations do not align with the unique aspects of cryptocurrencies.

This absence of clarity has led some crypto firms to relocate outside the country, further dampening the country’s influence on global crypto development.

Ardoino highlighted the need for the Countr to step up and implement “sensible crypto regulations” to protect users and retain the country’s standing as a technological leader.

Ardoino believes the US plays a crucial role in shaping global crypto laws. “Everyone, every single regulator in the world, will look at the US for the right regulation,” he said.

Amid increasing scrutiny from US regulators, Ardoino highlighted Tether’s ongoing efforts to improve transparency and compliance.

Tether has faced significant regulatory challenges, including a $41 million fine from the US Commodity Futures Trading Commission (CFTC) in 2021 for allegedly making misleading statements about its reserves backing USDT.

In light of these controversies, Ardoino stressed that Tether is “doubling down” on its commitment to transparency. “Compliance is very, very important,” he said, acknowledging that Tether’s compliance efforts have not always been perceived positively in the US.

However, he reaffirmed the company’s focus on open communication and transparency moving forward.

Growing Political Interest in Crypto

Political attention on cryptocurrency has grown significantly in the lead-up to the 2024 elections. The crypto industry has poured over $190 million into supporting political candidates, especially Republicans vying for Senate and House of Representatives seats.

Many view these contributions as an effort to influence future legislation, as lawmakers from both major parties have begun addressing crypto issues more directly.

Donald Trump, the Republican presidential candidate, has promised to pass crypto-friendly laws if elected. Recall that the erstwhile president urged the US to strive for supremacy in the crypto industry.

Meanwhile, Democratic candidate Vice President Kamala Harris recently expressed her support for crypto, particularly as part of her outreach to Black male voters.

Nonetheless, the Tether CEO also stressed that crypto regulation should become a priority no matter who wins the upcoming presidential election.

“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,” he said.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.