Stablecoin issuer Tether announced Jesse Spiro as its new head of government affairs after his three-year stint at PayPal. In an announcement, Tether shared that Spiro will manage relationships with lawmakers, regulators, and other significant figures, helping guide the company’s policy and engagement efforts.
He led regulatory relations for PayPal’s blockchain and crypto industry from 2021 to 2024 after spending over two years at Chainalysis in policy and government roles. Tether said Spiro’s appointment reflects the company’s dedication to leading responsible development in the crypto world. Additionally, Spiro mentioned he plans to collaborate with industry leaders and lawmakers to help expand the network.
Tether aids DOJ, faces legal threats
In 2021, Tether agreed to pay a $41 million fine to the US Commodity Futures Trading Commission after being accused of misleading the public about the reserves backing its USDT stablecoin. Specifically, critics have long called out Tether for not being clear about its reserve holdings, and a watchdog group even sent warnings to state officials in the US, highlighting concerns over Tether’s transparency.
Despite the challenges, Tether has worked closely with authorities. For example, the company helped the U.S. Department of Justice by aiding in the seizure of funds related to scams like pig butchering and romance fraud. There’s ongoing talk about more possible regulatory moves. Ripple CEO Brad Garlinghouse has hinted that U.S. officials might be gearing up to take action against Tether, showing that the company is under increasing scrutiny.
Furthermore, the hiring announcement came as U.S. lawmakers debated new legislation focused on dollar-backed stablecoins. Meanwhile, in April, lawmakers introduced the bipartisan Lummis-Gillibrand Payment Stablecoin Act to establish clear regulations for stablecoins if it becomes law.
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