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

Tether CEO Paolo Ardoino has pushed back on a report claiming that the stablecoin issuer is siding with banks in supporting restrictions on stablecoin yield in an overarching crypto market structure bill.

“We don’t take a position on the matter. Tether doesn’t share yield. So we don’t have much beef in this fight,” Ardoino told The Block when reached for comment on the report published Thursday in a Brogan Law Substack post.

The post reported that Tether could be aligned with banks and supportive of restricting stablecoin yield after the stablecoin issuer's new U.S. operation met with members of the Senate Banking Committee, citing people familiar with the matter. 

Ardoino's clarification is notable because the policy debate increasingly centers on whether stablecoin issuers should be allowed to pass yield to users. While banks have raised concerns that yield-bearing stablecoins could compete with deposits, Ardoino's comments suggest its focus is on maintaining USDT’s existing regulatory positioning rather than actively aligning with either side of the debate.

Aides on the Senate Banking Committee did not immediately respond to a request for comment. The issue of how to treat stablecoin rewards lands squarely in the banking committee's jurisdiction, and has emerged as a major sticking point as lawmakers try to pass broad crypto legislation — pitting banks against some in the crypto industry. 

Banking groups have sharply criticized a stablecoin law known as the GENIUS Act, which passed over the summer. While the law bars issuers from paying direct interest to stablecoin holders, it does not prohibit third-party platforms such as Coinbase from offering rewards.

These industry banking groups warn that a lack of clear limits could draw deposits away and could hurt community banks. Meanwhile, some in the crypto industry have countered, arguing the issue had already been debated ahead of passing GENIUS and accusing banks of trying to curb competition. 

Coinbase, a massive player in the crypto industry, pulled support from the Senate Banking Committee's version hours ahead of a planned hearing to amend and vote on the broader crypto bill earlier this month. Coinbase CEO Brian Armstrong voiced concerns about the bill's treatment of stablecoin rewards, alongside other areas, including the treatment of DeFi. 

The Senate Agriculture Committee is holding its hearing to amend and vote on its version of a crypto market structure bill on Thursday.