‘We don’t have much beef in this fight’ says Tether CEO as stablecoin yield stalls crypto bill

The passage of crucial cryptocurrency legislation in the United States has hit a significant roadblock, primarily centered around the contentious issue of whether stablecoin issuers should be permitted to offer yield or interest on their digital dollar holdings. Amid the regulatory paralysis, Tether CEO Paolo Ardoino adopted a noticeably unconcerned stance, stating that the world’s largest stablecoin issuer has ‘not much beef in this fight,’ signaling their detachment from U.S. regulatory burdens.

Key Congressional efforts, notably those emerging from the House Financial Services Committee aimed at creating a federal framework for payment stablecoins, have stalled repeatedly as lawmakers and regulators clash over how to classify interest-bearing stablecoin products. The central sticking point is the jurisdictional dispute: if stablecoin yield products are deemed securities, they fall under the strict oversight of the Securities and Exchange Commission (SEC); if they are treated purely as bank deposits or commodities, other regulatory bodies would take precedence.

Tether, which issues USDT—a stablecoin primarily operating outside direct U.S. regulatory jurisdiction and which historically does not offer direct yield to its retail holders—views the debate as internal conflict affecting its direct U.S. competitors, such as Circle (USDC). Ardoino’s comments imply that Tether’s operational model, which focuses on maintaining a 1:1 backing via reserve assets rather than attracting users through direct yield programs, insulates it from the current legislative bottleneck.

The stablecoin industry has spent the last year attempting to lobby Capitol Hill for clear rules that would allow compliant innovation. However, the inability to resolve the yield question has delayed the introduction of a comprehensive stablecoin bill, potentially pushing meaningful regulation well into the next political cycle. For global players like Tether, the continuing delay means greater market opportunity outside of the U.S., while compliant American issuers face an uncertain future regarding their ability to compete with offshore products offering high yield or staking rewards.

Source: ‘We don’t have much beef in this fight’ says Tether CEO as stablecoin yield stalls crypto bill