As crypto giant Tether faces increased scrutiny, CEO Paolo Ardoino shared with CoinDesk that the company is committed to complying with international sanctions and working closely with law enforcement. However, he acknowledged that Tether is ultimately subject to the decisions of U.S. authorities. Ardoino expressed that even though the company may not always present itself in the best light, what truly matters is that they have integrated the FBI and the U.S. Secret Service into Tether’s compliance systems. He emphasized that they have received appreciation from the Department of Justice (DOJ) for their efforts in compliance.
During an interview at the Plan B conference, Ardoino mentioned that they had not received any indication of being under investigation as reported by The Wall Street Journal. He firmly denied the allegations made in the article and defended Tether’s reputation. The company’s ally, Howard Lutnick, who heads Cantor Fitzgerald, has also been under the spotlight due to his involvement in Tether’s operations and his position in Donald Trump’s presidential campaign.
The potential consequences of U.S. authorities targeting Tether could have a significant impact on the global digital asset market, valued at $2 trillion. Tether plays a crucial role in the crypto ecosystem, boasting a market cap of $120 billion and serving as a primary source of liquidity on trading platforms. Additionally, Tether is increasingly being used as a payment method in developing nations.
When discussing the relationship between Tether and Cantor Fitzgerald, Ardoino highlighted the importance of transparency and compliance with the Office of Foreign Assets Control (OFAC). He reassured that Tether’s reserve assets are held in U.S. Treasury bills and that they have been proactive in combating illicit activities within the crypto space. Ardoino emphasized that Tether works closely with numerous government agencies worldwide to maintain the integrity of their platform.
Regarding the upcoming U.S. election, Ardoino expressed optimism that both parties would recognize the potential of stablecoins and cryptocurrencies. He believes that stablecoins, such as Tether, offer benefits that are easily understandable by regulators. Tether’s significant holdings in U.S. Treasury bills position the company among the top 20 countries globally, showcasing its contribution to the U.S. economy.
Ardoino addressed concerns about political influences on Tether, stating that the company does not seek political favors. He emphasized Tether’s commitment to financial inclusion and its role in supporting the U.S. economy through investments in U.S. debt. Ardoino believes that Tether’s operations align with the interests of both Democrats and Republicans, ultimately benefiting from regulatory clarity in the future.
