US Stablecoin Bill Accused of Being ‘Tailor-Made’ for Tether, Reigniting Revolving Door Controversy

A draft US stablecoin bill now advancing through Congress has been slammed by critics as “tailor-made” for Tether, sparking fresh concerns over regulatory capture and the revolving door between industry and government. Detractors point to the bill’s relaxed reserve asset composition rules and a special exemption for foreign issuers — provisions that closely mirror Tether’s current business model — arguing they could hand the world’s largest stablecoin issuer an outsized compliance edge. Tether’s USDT dominates cross-border settlements and on-chain trading, but has long faced questions over reserve transparency and regulatory status. If passed in its present form, the legislation would fundamentally reshape US oversight of stablecoins. Industry observers note the controversy underscores the acute sensitivity of rule-writing in stablecoin legislation: who drafts the rules, who benefits, and how to prevent regulation from being captured by specific commercial interests has become a pressing concern for both markets and policymakers.