Giancarlo Devasini of Tether is embroiled in a major conflict with Circle. This clash over the multi-trillion dollar stablecoin market comes as regulatory pressure intensifies.
Regulatory Pressure Intensifies
Circle has long advocated for stricter regulation of stablecoins, aware that Tether operates outside of U.S. jurisdiction. Jeremy Allaire, CEO of Circle, has testified before Congress multiple times, warning of the risks of unregulated stablecoins. Despite these accusations, Tether remains immensely profitable but faces criticism for a lack of transparency compared to Circle.
Support from Lawmakers and Banks
Circle has garnered support from U.S. lawmakers and financial institutions, positioning Tether as a national security threat. In 2023, the European Union banned offshore stablecoins, significantly affecting Tether. In 2024, the U.S. Treasury accused Tether of funding war efforts, and new bills threaten to ban unregulated stablecoins.
Trump Administration’s Support for Tether
Despite mounting pressure, Tether has secured backing from the Trump administration. Commerce Secretary Howard Lutnick, a former Wall Street executive, supported the company. In 2024, Donald Trump issued an order supporting stablecoins, and in early 2025, Tether received financial backing from Cantor Fitzgerald.
The conflict between Tether and Circle highlights the importance of regulation and control in the stablecoin market. As both companies continue to vie for dominance, the future of the industry remains uncertain.
