Tether, the issuer of the popular stablecoin USDT, has announced the appointment of Jesse Spiro as its new Head of Government Affairs. This move comes at a crucial juncture for the company, which continues to face regulatory scrutiny in the United States.
Spiro brings a wealth of experience in government and regulatory relations within the blockchain space. He previously served as Head of Regulatory Relations for PayPal’s Blockchain and Digital Currencies Business and was also the Chief Government Affairs Officer at blockchain analytics firm Chainalysis. His expertise will be invaluable to Tether as it navigates the complex and evolving regulatory landscape.
Despite its recent financial success, with reported profits of $6.2 billion in 2023, surpassing even investment giant BlackRock, Tether has faced questions about its operations and reserve backing. The company’s market capitalization has grown significantly over the past year, rising from $83 billion to $118 billion. This growth has been accompanied by increased regulatory attention, particularly regarding Tether’s high profit margins and management expense ratio of 5.2% on its tokenized money market fund.
In his new role, Spiro will be responsible for leading Tether’s policy and engagement efforts with lawmakers, regulators, and key stakeholders. He emphasizes the importance of collaboration between the public and private sectors in navigating the evolving legislative and regulatory environment. His focus on education and engagement signals Tether’s intention to proactively address ongoing regulatory concerns.
As the intersection of cryptocurrency and traditional finance continues to evolve, the industry is eagerly awaiting further developments. To gain insights into this dynamic landscape, consider attending Benzinga’s Future of Digital Assets event on November 19th. This event will bring together industry leaders and regulators to discuss the challenges and opportunities facing companies like Tether in the current regulatory environment.
