Stablecoin issuer Tether is reportedly in talks with Congressional lawmakers in the United States to help craft stablecoin regulatory policies at the federal level.
According to Fox Business reporter Eleanor Terrett, Tether has been working with representatives Bryan Steil, chairman of the House Financial Committee’s Subcommittee on Digital Assets, and French Hill on the STABLE Act introduced by both Congressmen on Feb. 6.
The company also seeks to provide input on two additional stablecoin bills introduced by other lawmakers, Tether CEO Paolo Ardoino told Terrett. The CEO added:
“We are not going to just throw in the towel and let Tether die just for the sake of not adapting to US legislation. But there is still a lot of uncertainty over what’s actually going to happen, and we want our voice to be heard in the legislative process.”
Working within US regulations would require Tether to conduct monthly reserve audits via a US-based accounting firm and maintain one-to-one asset collateral for its tokenized fiat equivalents, the Fox Business reporter wrote.
Tether’s involvement in the regulatory process comes amid crypto industry executives meeting with the Securities and Exchange Commission (SEC) to discuss regulatory issues affecting the sector and calls from the Trump administration to bring stablecoins onshore.
Related: Global stablecoin use soars — Will Trump crypto policy prompt US adoption?
Federal Reserve warming up to stablecoins to preserve US dollar dominance
In a Feb. 6 interview, Federal Reserve governor Christopher Waller said that US-pegged stablecoins “Will broaden the reach of the dollar across the globe and make it even more of a reserve currency than it is now.”
Stablecoin issuers have become some of the biggest buyers of US government debt in the world.
These firms use government securities to overcollateralize their fiat tokens and thus drive demand for the US dollar — prolonging its status as the standard in global capital markets.
Waller later added that banks and non-banks should be allowed to issue their own stablecoins and work with state regulators to ensure compliance with existing regulations.
However, the Federal Reserve governor also expressed concern with the risks surrounding stablecoins such as de-pegging events and fragmentation of the stablecoin ecosystem.
Magazine: Bitcoin payments are being undermined by centralized stablecoins
