Tether CEO Paolo Ardoino recently told CNBC that Bitcoin and stablecoins, especially Tether, have the potential to significantly enhance the U.S. economy, despite ongoing debates about their stability and regulation.
Stablecoins, which are digital currencies pegged to fiat money like the U.S. dollar, have gained traction for their ability to provide price stability in the often volatile cryptocurrency market. Tether, the largest stablecoin by market cap, is at the center of this trend. Ardoino’s remarks come as stablecoins are increasingly integrated into the global financial system, with the U.S. government pushing forward legislation to regulate dollar-based stablecoins with GENIUS ACT 2025.
“The integration of stablecoins into the financial ecosystem can lead to more efficient cross-border transactions and greater financial inclusion,” Ardoino said in the interview. He pointed to Tether’s role in serving unbanked and underbanked populations, a sentiment shared by other major stablecoin issuers like Circle.
However, stablecoins have not been without controversy. Tether faced criticism for its opaque reserve practices, resulting in a $41 million fine from the U.S. Commodity Futures Trading Commission in 2021. Despite this, Tether has continued to expand, recently acquiring an additional 8,888 BTC worth $380 million, bringing its Bitcoin holdings to 66,465.20 BTC.
The economic potential of stablecoins is highlighted by their increasing use in illicit transactions. A Chainalysis report from 2024 showed that stablecoins surpassed Bitcoin in illicit transaction volume, with sanctioned entities and jurisdictions accounting for about $14.9 billion in transactions. This has prompted calls for stricter disclosure requirements from regulators.
In response, Tether has taken steps to improve its compliance. In July 2024, it formed an alliance with Tron and TRM Labs to combat illicit activities, freezing $12 million in USDT linked to scams by September 2024. Ardoino has also stressed Tether’s commitment to working with law enforcement and enhancing sanctions controls to position the company as a responsible player in the crypto space.
The Federal Reserve’s Liberty Street Economics blog, updated in April 2025, noted the growth of stablecoins and their response to crypto market shocks, underscoring the ongoing debate about their role in the financial system. As the U.S. moves toward regulatory clarity, the potential impact of stablecoins on the economy remains a key focus for policymakers, industry leaders and the public.
In a significant development, the U.S. Senate passed the GENIUS Act of 2025 on June 17, 2025, aiming to provide a regulatory framework for payment stablecoins. The legislation, formally known as the Guiding and Establishing National Innovation for U.S. Stablecoins Act, stipulates that permitted payment stablecoins are not considered securities under securities law, while subjecting issuers to the Bank Secrecy Act for anti-money laundering purposes. The bill allows issuers to choose between federal or state regulation, with state regulation limited to those issuing less than $10 billion in stablecoins. This move is seen as a step toward legitimizing stablecoins and addressing some of the regulatory concerns that have plagued the industry.
In summary, while Tether and other stablecoins face challenges related to transparency and illicit use, their potential to improve economic efficiency and inclusion is significant. As the regulatory landscape evolves, the influence of these digital assets on the U.S. economy will continue to be closely watched.
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