Paolo Ardoino: How Tether Balances Autonomy and American Oversight

Tether’s head has long been open about a simple truth — his company exists at the will of U.S. authorities. At the Plan B conference in Lugano, Paolo Ardoino drew a stark analogy to explain the real balance of power: if the United States decide to shut down Tether, they can do so easily. But instead of resisting, the company chose a different path — maximum cooperation with regulators and creating a system that cannot be accused of bad faith.

This choice becomes especially relevant amid increasing pressure. The Wall Street Journal reported in October 2024 that the U.S. Department of Justice is conducting a criminal investigation into Tether. According to the publication, the company is being examined for possible violations of sanctions laws and anti-money laundering regulations. Tether denies these allegations, but the investigation indicates growing U.S. government attention toward the stablecoin.

Legitimacy through transparency: Ardoino’s defense strategy

Paolo Ardoino noted that Tether actively involves U.S. law enforcement in verifying its compliance systems. The company emphasizes that the FBI, U.S. Secret Service, and Department of Justice have access to Tether’s internal processes. The company has received thank-you letters from government agencies, which are used as proof of good faith.

The paradox is that Tether aims to position itself not as a revolutionary tool for financial freedom, but as a compliant instrument within the American financial system. Ardoino admits that despite the company’s efforts to present itself favorably, its main achievement is attracting the attention of federal agencies to its control systems.

The volume of USDT involved in illegal activities, according to the head, is insignificant compared to the scale of traditional dollar use in criminal operations. Ardoino cites an example: in September 2024, TD Bank paid over $3 billion in fines for inadequate control over drug cartel transactions. This vividly demonstrates that money laundering issues extend across the entire financial system, not just the crypto sector.

From startup to global player: the role of Cantor Fitzgerald

Tether’s rise would have been impossible without support from a major American financial institution. Cantor Fitzgerald, led by Howard Lutnick, became a key partner, providing custody for approximately $80 billion in U.S. Treasury securities. This arrangement serves as a guarantee of USDT’s financial stability.

Ardoino explains that the choice of Cantor Fitzgerald was driven by the company’s growth from an issuer with $10 billion using regional banks to a global player requiring services from an “Ivy League-level institution” to manage its assets. Lutnick played a critical role, publicly confirming that Cantor conducted a comprehensive review of Tether and told the market: “Their money is with us, they are safe.”

Storing reserves with an American company, Ardoino believes, does not pose a risk. He emphasizes that wherever the Treasury securities are stored, they ultimately reside in accounts at the Federal Reserve. The comfort in working with Cantor comes from strict compliance with OFAC requirements — the U.S. Department of the Treasury’s sanctions enforcement division.

However, there is some information about a potential conflict of interest. Lutnick not only manages Tether’s reserves but also leads the transition team for the Republican presidential candidate Donald Trump. Ardoino counters criticism by stating that Tether does not expect any political advantages from anyone.

The crypto market’s dependence on USDT stability

Tether’s influence on the global crypto market is enormous. Digital asset values exceed $2 trillion, and USDT, with a market cap of $120 billion, remains the industry’s largest stablecoin. USDT’s monopoly covers nearly all trading platforms, serving as the main liquidity source. In many developing countries, stablecoins are used as an alternative to national currencies for international transfers and savings.

At the time of the original article’s publication, Bitcoin was around $68,142, but the market reacted sharply to the DOJ investigation news. Cryptocurrencies plunged in response to alarming headlines. Later, Ardoino posted on social media X that he saw no evidence of an investigation into Tether, calling the WSJ article “extremely irresponsible.”

Political balancing act: how Tether survives amid pre-election tensions

The upcoming U.S. elections pose an additional challenge for Tether. Ardoino expressed cautious optimism that whichever candidate wins, they will understand the potential of cryptocurrencies and stablecoins.

He believes Democrats should better understand the importance of financial accessibility — the main advantage promoted by Tether. Republicans, on the other hand, should be interested in maintaining America’s financial influence: Tether annually purchases large volumes of U.S. Treasury securities, supporting the dollar’s dominance.

Ardoino emphasizes that the system the company is building makes sense for both political sides. Regardless of the election outcome, he is convinced that increased regulation of the crypto sector in the U.S. will lead to positive results.

Scaling control: how Tether fights crime

The company positions itself as an active participant in combating illegal operations. Tether cooperates with 180 government agencies worldwide, regularly freezes crypto wallets, and creates blacklists of suspicious addresses.

Ardoino sarcastically notes that a criminal would have to be “extremely stupid” to try to use USDT or cryptocurrencies for illegal purposes. According to him, the monitoring and reporting system makes such activities overly risky.

Side events: lending market crisis

Amid mounting pressure on major crypto players, Blockfills co-founder Nicholas Hammer stepped down as CEO. Insiders report that some clients were advised to withdraw their assets before the platform froze deposits and withdrawals on February 11.

Based in Chicago and having processed over $60 billion in trading volume in 2025, the company faced a general market downturn. Reports indicate that Blockfills is actively seeking a buyer for its business.

These events highlight the instability of certain crypto market segments but also demonstrate why companies like Tether — with their huge reserves and government backing — remain relatively resilient amid volatility.

Ardoino’s final stance is simple: Tether is not an enemy of the U.S. government but a tool embedded within the existing system. This approach, despite criticism from libertarian crypto circles, ensures the company’s survival amid increasing regulation.