A new Bloomberg investigation has examined the lobbying and political engagement of Tether, the company behind the world’s largest stablecoin, during the negotiations that led to the passage of the GENIUS Act. The report offers a detailed look at how the firm worked to shape the legislation, which governs digital asset oversight in the United States.
What the investigation covers
The Bloomberg probe focuses on Tether’s activities in the months before the GENIUS Act was finalized. According to the report, the company deployed a coordinated effort involving direct meetings with lawmakers, campaign contributions, and the use of third-party advocacy groups. The investigation does not allege any illegal conduct but highlights the extent of Tether’s push to influence the regulatory framework that directly affects its business model.
The GENIUS Act at a glance
The GENIUS Act, short for “Generating Enhanced National Innovation and Understanding of Stablecoins,” was introduced to create a federal licensing regime for stablecoin issuers. It aims to set reserve requirements, consumer protections, and oversight rules. Tether, which issues the USDT stablecoin, has long faced scrutiny over its reserves and transparency. The legislation could impose stricter standards on the company.
Tether’s political engagement
The investigation details how Tether hired multiple lobbying firms and made political donations to key members of Congress involved in drafting the bill. The company also reportedly engaged with Treasury Department officials and other regulators. While Tether has publicly supported clear rules for stablecoins, the Bloomberg report suggests its behind-the-scenes efforts were aimed at shaping provisions that would be favorable to its operations.
What comes next
The GENIUS Act has already passed one chamber of Congress and is awaiting action in the other. Tether has not commented on the Bloomberg investigation. The report raises questions about how much influence private companies can exert over legislation that directly affects their bottom line. Lawmakers are expected to hold additional hearings on stablecoin regulation later this year.
