Tether remains the most popular stablecoin for remittances and banking access in growing regions.
Paolo Ardoino, the CEO of Tether, has accused competitor stablecoin issuers of restricting USDT’s expansion through regulatory pressure. He criticized rivals for using legal means to prevent Tether from accessing US Treasury securities.
The debate started when US lawmakers suggested new stablecoin rules that might impact foreign issuers. According to Ardoino, online platforms, institutional payment systems, and thousands of kiosks across Africa and South America are the three main sectors that Tether serves.
He noted that the USDT issuer is the 18th largest investor in US treasuries, with roughly $115 billion in holdings. The proposed laws limiting foreign stablecoin issuers’ access to US Treasury assets could impact Tether’s assets.
According to Ardoino’s analysis, such proposed regulatory restrictions risk developing countries’ possibilities for financial inclusion. According to the latest economic data, the USDT issuer manages assets valued at over $100 billion, resulting in an annual profit of $6.2 billion.
Tether CEO Issues a Warning About Stablecoin Limitations
According to Ardoino, stablecoin laws would put communities that rely on stablecoins as their primary asset at risk of losing their financial stability. Vance Spencer, Framework Ventures co-founder, is concerned about the laws regarding stablecoins in the United States.
He believes that limiting foreign issuers can lessen the US dollar’s global impact. Spencer further said restrictions on Treasury’s availability may lead to more stablecoin users settling for decentralized stablecoins or non-dollar-based assets.
Also read:The USDT issuer differs from many of its rivals due to its extensive use in developing regions. Through its robust distribution network, Tether supports financial inclusion projects globally.
Tether Remains Firm Amid Uncertainty in Regulatory Changes
Ardoino also stated that the USDT issuer would not be discouraged by regulatory pressure. He added that the company continues to be committed to innovative development and financial inclusivity.
Despite mounting opposition from competitors and authorities, the stablecoin issuer is still growing internationally. Businesses like Tether play a key role in digital finance by bridging the divide between decentralized finance and traditional banks.
Tether And Swan Bitcoin’s Legal Battle Continues
Meanwhile, the USDT stablecoin issuer has been unable to obtain a court injunction to prevent Swan Bitcoin, its former Bitcoin mining partner, from filing a lawsuit in California. The UK High Court’s decision to reject Tether’s request for an injunction was another development in the two companies’ deteriorating relationship. The collapsed mining firm is involved in a legal battle with the USDT issuer over claims of contract violations and proprietary information exploitation.
In June 2023, Swan Bitcoin and Tether established a joint mining operation named 2040 Energy. The project sought to establish mining operations in Texas, Tasmania, and Norway before the two firms’ relationship collapsed.
The Broken Partnership
Court documents state that Tether owned 80% of the business, with Swan owning the other 20%. However, their relationship broke down due to financial difficulties and disagreements over valuation.
The stablecoin issuer accused Swan of obtaining funding from another cryptocurrency company (Ripple) without any notification. The gap between the companies widened even more when the chief executive officer of 2040 Energy quit in August, along with several Swan staff members and consultants.
In its UK petition, the USDT issuer contended that the California case might allow Swan Bitcoin to obtain confidential company data and utilize it to gain a competitive edge. Fearing that details would reveal confidential information about its business, the corporation requested an injunction to stop Swan from pursuing the case alongside six former staff members.
Judge Bright disregarded Tether’s concerns, saying Swan was not likely to take advantage of any information learned during the hearings.
Swan Bitcoin’s Arguments
Swan Bitcoin filed a complaint against Tether for allegedly breaching a contract in January. Swan also filed a lawsuit in the US to transfer corporate operations to a competitor, Proton Management.
Court documents claimed Tether conspired with Swan’s former consultants to assist the new business. However, the dispute between the USDT issuer and Swan Bitcoin is far from over, as both lawsuits are still pending in separate jurisdictions.
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