Stablecoin issuer Tether has announced a significant new hire, appointing Jesse Spiro, a former executive at PayPal, as its new head of government affairs. Spiro, who held a regulatory role at PayPal’s blockchain and crypto division, will now oversee Tether’s policy engagement with lawmakers and regulators.
Spiro’s Role at Tether
In an official statement released on September 13, Tether revealed that Spiro will focus on “leading policy and engagement efforts with lawmakers, regulators, and key stakeholders.” His extensive background includes more than three years at PayPal, where he served as the head of regulatory relations for their blockchain and cryptocurrency division. Prior to that, Spiro spent over two years at Chainalysis, a blockchain analytics firm, specializing in policy and government affairs.
Tether’s CEO, Paolo Ardoino, stated that Spiro’s appointment underscores the company’s “commitment to responsible innovation” in the rapidly evolving cryptocurrency space. Spiro expressed his intent to collaborate with both industry leaders and policymakers to help foster the growth of the ecosystem.
Tether’s Regulatory History and Challenges
While Tether has made strides in the crypto industry, it has faced its share of regulatory challenges. In 2021, the company paid a $41 million fine to the U.S. Commodity Futures Trading Commission (CFTC) after accusations that it misrepresented the reserves backing its USDT stablecoin. Tether has also been criticized for its lack of transparency regarding its reserves, with watchdog groups voicing concerns to state officials.
Despite these challenges, Tether has played a role in assisting U.S. law enforcement, including helping the Justice Department seize funds linked to online scams such as pig butchering and romance fraud schemes.
Stablecoin Regulation in the U.S.
Spiro’s hiring comes at a critical juncture as U.S. lawmakers are considering new regulations for stablecoins. The Lummis-Gillibrand Payment Stablecoin Act, a bipartisan bill introduced in April, could establish a regulatory framework for stablecoin issuers. If passed, it would offer clearer guidelines on how stablecoins like Tether’s USDT should operate within the U.S. financial system.
Despite Ripple CEO Brad Garlinghouse’s speculation that the U.S. government may target Tether in future enforcement actions, the company remains focused on aligning with regulations and contributing to the growth of the crypto ecosystem under Spiro’s leadership.
