Tether’s Hidden Hand in U.S. Law: White House Advisors and a 3-Year Reprieve
A new report published by Bloomberg claims that Tether has gained significant political influence in shaping U.S. cryptocurrency laws through former White House advisors.
Tether (USDT), the world’s largest stablecoin issuer, has come into the spotlight due to alleged deep ties established within the U.S. government’s regulatory processes. According to Bloomberg, citing sources close to the negotiations, it is claimed that certain critical provisions in the bill known as the GENIUS Act were added directly to protect the company’s interests. This situation has sparked a new debate regarding the impartiality of regulations and the power of political lobbying.
At the center of the allegations is former White House crypto advisor Bo Hines. It is stated that Hines defined the 3-year compliance period introduced for foreign stablecoin issuers as the White House’s “red line.” What is noteworthy is that Hines officially joined Tether approximately one month after this provision was enacted. Additionally, Howard Lutnick—who handles the company’s banking and is the current U.S. Secretary of Commerce—is reported to have played an active role in blocking legislative proposals unfavorable to the company.
The GENIUS Act and Regulations in Favor of Tether
The provisions in the final legislative text, which are believed to favor Tether, aim to place the company’s operations in the U.S. market on a more flexible footing. In particular, the long compliance period granted to foreign companies is interpreted by market observers as a special privilege provided to the firm. During this process, the active role of figures close to the Trump administration in the lawmaking phase demonstrates how political influence can alter industry rules.
Tether, on the other hand, categorically denies all these allegations. Company officials maintain that they have not gained any special advantages and have not conducted any improper lobbying activity. However, the fact that former advisors and key figures joined the company shortly after the law was passed continues to fuel transparency debates within the cryptocurrency community. These questions regarding the fairness of regulations could lead to stricter oversight of the stablecoin market in the period ahead.