Cryptocurrency Giant Tether Under Fire from US Authorities: CEO Ardoino Speaks Out
As the world’s largest stablecoin issuer, Tether has come under intense scrutiny from US authorities in recent weeks. In an exclusive interview with CoinDesk, CEO Paolo Ardoino addressed concerns over illicit crypto use and the company’s role in international finance.
Tether’s Commitment to Compliance and Regulation
Ardoino emphasized that Tether respects international sanctions and works closely with law enforcement agencies worldwide. The company has onboarded 180 government agencies around the globe, including the US Federal Bureau of Investigation (FBI) and the US Secret Service. "We think we are doing, you know, the best we can," Ardoino stated.
Tether’s commitment to compliance is reflected in its robust systems for detecting and preventing illicit activities. The company freezes and blacklists crypto wallets suspected of involvement in money laundering or other financial crimes. "The message that we’re giving is very loud and clear: You have to be a very, very, very stupid criminal if you want to use USDT or crypto in general," Ardoino said.
Cantor Fitzgerald and the Politics of Finance
Ardoino also addressed potential conflicts of interest surrounding Cantor Fitzgerald, the Wall Street bond-trading powerhouse that custodies most of Tether’s $80 billion U.S. Treasury bill holdings. Howard Lutnick, CEO of Cantor Fitzgerald, serves as head of Republican presidential candidate Donald Trump’s transition team.
Ardoino stated that working with Lutnick and Cantor Fitzgerald was a deliberate choice made by Tether to upgrade its operations from using small banks to partnering with an "Ivy League custodian" for its Treasury bill holdings. "What made the difference was Howard [Lutnick] publicly affirming that his firm had done due diligence on Tether and telling everyone ‘we have their money,’" Ardoino said.
Illicit Finance and the Role of USDT
Ardoino acknowledged the potential for illicit activities involving USDT, but downplayed its significance compared to the broader global financial landscape. "USDT’s role in illicit finance is a drop in the ocean compared to what the U.S. dollar used for," he said.
For example, Ardoino pointed out that major banks have been fined billions of dollars for their roles in facilitating money laundering by drug cartels. Tether has taken proactive steps to prevent similar activities involving USDT and crypto assets more broadly.
US Regulations and Financial Inclusion
Ardoino expressed optimism regarding the potential impact of upcoming US elections on digital asset regulations, stating that he hopes whoever wins will understand the value of stablecoins like USDT. "When it comes to stablecoins, I think it’s easier for them to see it," Ardoino said.
Tether has been a vocal advocate for financial inclusion, with a significant portion of its $80 billion U.S. Treasury bill holdings ranking among the top 20 countries globally. The company is also working closely with regulators and law enforcement agencies worldwide to advance responsible use of crypto assets.
Conclusion
As tensions between Tether and US authorities continue to escalate, CEO Paolo Ardoino has spoken out in defense of his company’s commitment to compliance and regulation. With its $120 billion market cap (USDT) by far the industry’s largest stablecoin, Tether is a crucial player in the global digital asset market.
Ardoino acknowledged potential conflicts surrounding Cantor Fitzgerald and Lutnick’s political role but emphasized that Tether does not expect special treatment from any government or authority. As the company continues to navigate these complex challenges, one thing remains clear: Tether is committed to advancing financial inclusion and promoting responsible use of crypto assets worldwide.
As Ardoino said, "What we’re building makes sense for both parties. I think that either way, [U.S. regulations] will turn out to be a positive thing.