Launchy Regulatory Roundup #26 - Tether Teams Up With US Lawmakers on Stablecoin Rules

US SEC 🤝 CEXs | Pierce: Memecoins Likely Outside SEC’s Jurisdiction

Marco Manoppo & Muhammad Reynaldi Ariananda Arkiang
February 16, 2025

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Welcome to our 26th edition of the regulatory roundup. If you know anybody who would benefit from this content, please help us spread the word!

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Politicians are dropping memecoins (and rugging them), while the SEC quietly signals they aren’t securities, meaning the chaos will likely continue. Meanwhile, Tether is lobbying lawmakers, Trump is stacking his crypto team, and XRP and DOGE ETFs are inching forward. With regulators playing catch-up and institutions positioning for a compliant future, the Wild West of crypto isn’t ending, it’s just getting a bigger spotlight.

In Today's Edition:

Headline: Tether Teams Up With US Lawmakers on Stablecoin Rules 🤝
Global Legal Roundup: US SEC 🤝 CEXs, Quintenz for CFTC 🇺🇲
Case Study: Pierce: Memecoins Likely Outside SEC’s Jurisdiction 🔎

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HEADLINE

Tether Teams Up With US Lawmakers on Stablecoin Rules

State of play: Tether is reportedly working with members of the US House Financial Services Committee, specifically Representatives Bryan Steil and French Hill, to shape federal stablecoin regulations.

This includes contributing to the STABLE Act introduced by both lawmakers in early February, as well as offering input on two additional stablecoin bills.
According to Tether CEO Paolo Ardoino, the company wants its perspective heard during the legislative process and is prepared to adapt to US rules.
The new rules may include requirements like monthly reserve audits and 1:1 collateral backing.
Tether’s involvement comes amid broader regulatory discussions, including meetings between crypto industry leaders and the SEC, and the push to bring stablecoins onshore.
Meanwhile, the Federal Reserve is warming to stablecoins as a means of preserving the US dollar’s global dominance but remains concerned about risks such as de-pegging events and market fragmentation.

What’s Next: Tether’s collaboration with lawmakers suggests that stablecoin regulations could soon take a more defined shape and may introduce stricter compliance measures, including mandatory audits and full collateral backing.

Why it Matters: If lawmakers strike the right balance, stablecoins could cement their role in global finance, benefiting both the crypto industry and the broader economy.

Our Take: If Tether and other stablecoin issuers adapt to US regulatory frameworks, it could bring legitimacy to the stablecoin sector, encourage institutional adoption, and integrate crypto more deeply into the traditional financial system.

GLOBAL LEGAL ROUNDUP

America:

🇺🇲 Trump to tap a16z’s Brian Quintenz for CFTC head.
🇺🇲 Franklin Templeton registers Solana Trust in Delaware.
🇺🇲 SEC acknowledges Grayscale’s XRP and DOGE ETF filings.
🇺🇲 Binance and SEC move to halt case, find an early resolution.
🇺🇲 XRP ETF is one step closer after the SEC acknowledges the filing.
🇺🇲 Trump has made his major decisions on his crypto regulation team.
🇺🇲 The crypto industry gets chance to make its case to US Congress.
🇺🇲 Pantera Capital founder faces tax probe over $850M crypto profits.
🇺🇲 Trump signs reciprocal tariff order, includes non-monetary provisions.
🇺🇲 19 US states are weighing bills to put public money into digital assets.
🇺🇲 SEC asks for Coinbase case deadline extension, citing 'potential resolution.'

Europe:

🇬🇧 Bitpanda expands services in UK with FCA approval

MENA:

🇦🇪 Dubai regulator says memecoins must adhere to regulations.

APAC:

🇰🇷 South Korea to start lifting ban on corporations trading crypto.
🇮🇳 Indian authorities seize $190M in crypto tied to BitConnect Ponzi scheme.

CASE STUDY

Pierce: Memecoins Likely Outside SEC’s Jurisdiction

SEC Commissioner Hester Pierce

State of play: SEC Commissioner Hester Peirce signaled a shift in crypto regulation, stating that many memecoins fall outside the SEC’s jurisdiction and should be addressed by Congress or the CFTC.

She emphasized financial autonomy, saying people should be free to buy speculative tokens but must accept the risks.
This stance marks a departure from former SEC Chair Gary Gensler’s approach, which classified most crypto assets as securities.
Peirce aims to clarify crypto regulations and offer a structured compliance path instead of aggressive enforcement.

Our Take: Her comments come amid high-profile memecoin scandals, including rug pulls linked to Argentina’s President Javier Milei.

With memecoin speculation running wild, the big question remains, will lawmakers step in, or will the market remain unchecked?

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our comprehensive database of crypto regulations around the world👇

NOTEWORTHY READS & MEME

Alex Thorn’s thread on SEC and Binance halting case.
DEF’s paper on DOJ’s indictment on non-custodial, privacy-enhancing software.
CCI’s thread on what needs to happen in Congress to achieve a golden age of digital assets.

apologize to him
— alex (@kirbxbt)
7:39 AM • Feb 15, 2025

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