Tether CEO Says No Stablecoin Works With Law Enforcement Like USDT

Key Takeaways

• Tether is actively working with over 230 law enforcement agencies worldwide.
• Ardoino dismissed concerns over USDT’s stability, claiming assets like U.S. Treasuries fully back it.
• Tether is considering launching a U.S.-only stablecoin to comply with upcoming regulatory changes.

Tether, the company behind USDT, has long been under the microscope for its role in the global crypto market.

In a recent interview with CNBC , Tether’s CEO, Paolo Ardoino, discussed USDT’s role in global markets, its legal collaborations, and future plans, including a potential U.S.-only stablecoin.

Legal Engagement: A Crypto First

Ardoino made it clear that Tether is one of the most legally engaged stablecoins in the market.

The company reportedly collaborates with more than 230 law enforcement agencies in 50 countries, far surpassing any other crypto firm.

This network includes high-profile U.S. agencies such as the FBI and Secret Service, making Tether a leader in the legal space.

“We work with the Justice Department and more than 230 law enforcement agencies across more than 50 countries,” Ardoino said. “No company, no institution, even in the traditional financial system, has such a breadth of collaboration with law enforcement.”

These partnerships are crucial as USDT continues to face criticism for its potential use in illegal activities like money laundering.

However, Ardoino was quick to defend the company’s role in tackling illicit use, explaining that Tether often freezes funds linked to criminal activity, even before a court order is issued.

Backing and Stability: USDT’s Financial Foundation

Ardoino also addressed longstanding concerns about USDT’s reserves and stability.

He pointed to Tether’s holdings in U.S. Treasuries, around $120 billion, as evidence that USDT is more than adequately backed by liquid assets.

He reassured users that USDT’s reserves exceed its circulating supply, which helps maintain its stability and peg to the U.S. dollar. In times of crisis, users can always redeem their USDT for dollars, Ardoino said confidently—

Tether has faced scrutiny for not conducting third-party audits of its reserves, but the company provides regular quarterly updates that detail its holdings, which include U.S. Treasuries and cash equivalents.

Navigating Regulatory Pressures

Tether has also encountered regulatory pushback, particularly in Europe, where uncertainty around its reserves led some major exchanges to delist USDT to comply with new regulations.

Similar regulatory changes are being made in the U.S., and Ardoino indicated that Tether may have to launch a U.S.-only stablecoin to comply with these stricter rules.

The CEO said that Tether is prepared to adapt to whatever regulatory environment comes its way, signaling that the company is ready to meet future requirements head-on.