Once shunned for its murky financial practices and links to criminal activity, Tether — the world’s largest stablecoin issuer — is now finding a warm welcome in the corridors of American power.
In March, Paolo Ardoino, chief executive of Tether, joined U.S. lawmakers and top business executives at a private luncheon held at the opulent Willard hotel, just steps from the White House. Among those present was Senator Bill Hagerty, a Tennessee Republican on the Senate Banking Committee. The gathering centred on discussions around digital currency regulations and national security, according to four people with knowledge of the event.
Tether’s recent proximity to Washington’s elite marks a striking transformation. Long viewed as an opaque company that facilitated financial crime and misled regulators, Tether is now actively influencing legislation, launching PR campaigns, and considering a formal U.S. presence. “The ultimate American ally,” said Jeff Miller, a prominent Republican lobbyist who represents Tether and investment firm Cantor Fitzgerald.
The shift comes amid a broader political realignment. President Donald J. Trump, whose own family launched a crypto venture last year, dismantled Biden-era crackdowns on digital assets within days of taking office. Tether, which once avoided the U.S. market, is now leveraging this friendlier regulatory climate.
The company’s primary product is a stablecoin — a cryptocurrency pegged to the U.S. dollar. Stablecoins have long raised red flags due to their appeal in money laundering and market manipulation. In 2021, Tether paid $18.5 million to settle a fraud probe by New York’s attorney general, who accused it of misrepresenting reserves and described it as “a stablecoin without stability.”
But today, Tether appears determined to rewrite that narrative. The company is lobbying to shape a Senate bill introduced this year by Sen. Hagerty that would establish ground rules for stablecoins. It’s also embarked on an image-polishing campaign, including ads in Washington publications highlighting its collaboration with U.S. law enforcement.
Ardoino, an Italian national who only recently visited the United States for the first time, has been actively building relationships. During his March trip, he participated in a Commodity Futures Trading Commission forum, attended a Coinbase-sponsored party, and met Zach Witkoff of Trump’s crypto startup, World Liberty Financial.
Tether’s deepening U.S. ties also include a partnership with Cantor Fitzgerald, previously led by Trump’s commerce secretary, Howard Lutnick. The firm has aligned itself with Watchtower Strategy, a public affairs company founded by Miller and former House Speaker Kevin McCarthy.
Behind the scenes, Tether’s operations mirror those of a bank. Customers deposit money in exchange for stablecoins, and Tether earns revenue by investing those deposits. Critics once warned that its reserves couldn’t support mass redemptions, but the firm now publishes independent audits indicating roughly two-thirds of its $94 billion in reserves are held in U.S. Treasury bills. Last year, it posted profits exceeding $13 billion.
Ardoino hinted that Tether may soon launch a U.S. division offering a domestic stablecoin tailored to financial institutions. He also plans more frequent visits to Washington.
“How fun that would be,” Ardoino said of competing with American crypto firms on their home turf.
Once cast as a destabilising force in global finance, Tether is now positioning itself at the centre of U.S. digital currency policy — a transformation as controversial as it is remarkable.
