Tether looks to put past controversies behind it as it prepares to re-enter the US market with new regulatory guidance.
Tether has appointed Bo Hines, former Executive Director of the White House Crypto Council, as Strategic Advisor for Digital Assets and US Strategy.
Hines’ new role, confirmed on August 19, will see him work alongside Tether’s leadership team to support and execute the company’s re-entrance into the US. Tether said he will be key to cultivating constructive relationships with policymakers and industry stakeholders.
“His deep understanding of the legislative process, combined with his passion for practical blockchain adoption, makes him an invaluable asset as Tether enters the biggest market in the world,” said Paolo Ardoino, CEO of Tether.
Before joining Tether, Hines served as Executive Director of the White House Crypto Council under President Donald Trump.
During his time at the White House, he helped create a detailed set of rules for digital assets, including guidance on taxes, banking, stablecoins and overall crypto regulation. He also pushed for a national Bitcoin reserve, which was approved through an executive order directing federal agencies to buy Bitcoin without increasing the federal budget.
Hines worked closely with the Treasury and Commerce Departments, and other financial regulatory agencies to ensure crypto rules complimented the country’s economic goals, with a focus on stablecoin oversight and protecting consumers.
He also engaged with the public and crypto community, helping the US take a leading role in crypto innovation and supporting the passage of the GENIUS Act, the first federal law regulating stablecoins.
“During my time in public service, I witnessed firsthand the transformative potential of stablecoins to modernise payments and increase financial inclusion,” said Hines.
“I’m thrilled to join Tether at such a pivotal moment, helping to deliver an ecosystem of products that will set the standard for stability, compliance, and innovation in the US market – one that will empower American consumers and help revolutionize our nation’s financial system.”
Why this hire matters
The timing of this announcement highlights how important Tether’s return to the US is. After years operating offshore and facing regulatory scrutiny, the company is now trying to work within American rules while keeping its role as a key source of liquidity for crypto markets.
Tether has had a controversial past. Founded in 2014 in the British Virgin Islands, it faced repeated questions about whether its USDT tokens were fully backed by US dollars.
In 2021, the company paid $18.5m to settle claims with the New York Attorney General, which found it had misrepresented its reserves, and an additional $41m fine from the Commodity Futures Trading Commission (CFTC).
Following this legal action, Tether was prohibited from serving New York customers and moved its operations offshore, most recently to El Salvador, a country with criticism due to its limited financial oversight.
Despite these problems, Tether’s USDT remains the world’s largest stablecoin, with more than $110bn in circulation. However, regulatory pressure is rising.
Europe’s MiCA rules and new US laws, including the GENIUS Act, now set strict standards for stablecoin reserves and transparency.
In the US, success for issuers like Tethe will depend on meeting clear regulatory requirements. The GENIUS Act requires stablecoins to be fully backed by high-quality liquid assets, mainly short-term US Treasury securities, and to undergo regular third-party audits to confirm reserve holdings.
Issuers cannot offer interest or yield to token holders, a rule designed to avoid competing with traditional bank deposits. They must also use blockchain monitoring tools and digital ID checks to prevent money laundering and ensure compliance.
