Zinger Key Points
- Tether's profitability surged in 2023, with $6.2 billion profit, surpassing BlackRock, but regulatory concerns still linger.
- Spiro’s appointment highlights Tether’s efforts to strengthen government relations while facing increased scrutiny from U.S. lawmakers.
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Stablecoin issuer Tether USDT/USD Friday announced that it has appointed Jesse Spiro as its new Head of Government Affairs.
What Happened: This move comes as the company continues to face regulatory challenges and scrutiny in the United States.
Spiro, who previously served as Head of Regulatory Relations for PayPal‘s PYPL Blockchain and Digital Currencies Business, brings over six years of experience in government and regulatory relations within the blockchain space.
Prior to his role at PayPal, Spiro was the Chief Government Affairs Officer at blockchain analytics firm Chainalysis.
The appointment comes at a critical time for Tether.
Despite its recent financial success, with reported profits of $6.2 billion in 2023 surpassing those of investment giant BlackRock, the company continues to face questions about its operations and reserve backing.
Tether’s market capitalization has grown significantly over the past year, rising from $83 billion to $118 billion.
Also Read: SEC Chair Gary Gensler Under Investigation For Alleged Political Favoritism In Hiring Practices
However, this growth has been accompanied by increased regulatory attention.
The company’s high profit margins and management expense ratio of 5.2% on its tokenized money market fund have raised eyebrows in both the crypto industry and regulatory circles.
In his new role, Spiro will be tasked with leading Tether’s policy and engagement efforts with lawmakers, regulators and key stakeholders.
“The ever-evolving legislative and regulatory landscape will continue to require strong collaboration between the public and private sectors,” Spiro stated in the company’s press release. His focus on education and engagement signals Tether’s intention to address ongoing regulatory concerns proactively.
What’s Next: Those interested in exploring the intersection of cryptocurrency and traditional finance further may want to attend Benzinga’s Future of Digital Assets event on Nov. 19, where industry leaders and regulators are expected to discuss the challenges and opportunities facing companies like Tether in the current regulatory environment.
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