Tether Hires PayPal Veteran Jesse Spiro as Regulatory Scrutiny Continues

Stablecoin issuer Attached USDT/USD pair rate On Friday, he announced that he had appointed Jesse Spiro as the new head of government affairs.

What happened:The move comes as the company continues to face regulatory challenges and scrutiny in the United States.

Spiro, who previously was head of regulatory relations for PayPal‘s Pypl Blockchain and Digital Currencies Business brings over six years of experience in government and regulatory relations in the blockchain space.

Prior to joining PayPal, Spiro was Director of Government Affairs at a blockchain analytics company. String analysis.

This 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 backstop reserves.

Tether’s market capitalization has grown significantly over the past year, from $83 billion to $118 billion.

Also read: SEC Chairman 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 5.2% management expense ratio on its tokenized money market fund have raised eyebrows in both the crypto industry and regulatory circles.

In his new role, Spiro will be responsible for leading Tether’s policy and engagement efforts with legislators, regulators, and key stakeholders.

“The ever-changing legislative and regulatory landscape will continue to require close collaboration between the public and private sectors,” Spiro said in the company’s press release. Its focus on education and engagement signals Tether’s intention to proactively address current regulatory concerns.

And then?:Those interested in further exploring the intersection between cryptocurrency and traditional finance may want to attend Benzinga’s Future of Digital Assets event on November 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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