Giancarlo Devasini, the billionaire behind Tether, is in a war for survival. From his quiet home in Lugano, Switzerland, he watches as his company—the largest stablecoin issuer in crypto—faces regulatory threats, political attacks, and a full-scale assault from a corporate rival, Jeremy Allaire, the CEO of Circle. This isn’t just a business fight—this is about who controls the future of a $3 trillion industry. In an interview with the Wall Street Journal on Monday, Devasini said he believes Allaire is actively working to destroy his company.
According to the report, the Tether owner has accused Circle of secretly lobbying politicians to ban Tether’s tokens, which are issued offshore and used in four out of five cryptocurrency transactions. Circle’s USD Coin (USDC) is the second-largest stablecoin, but if Allaire gets his way, it’d become the dominant one in no time.
Regulators turn up the heat on Tether
Circle has spent years pushing for stricter laws on stablecoins, knowing that Tether operates outside US jurisdiction. Allaire has testified before Congress multiple times, warning lawmakers about the risks of unregulated digital dollars. A top Circle official told lawmakers that Tether’s tokens have been used in terrorist financing, a claim that put more pressure on the Justice and Treasury Departments to investigate. “We want to make sure that USDC is the preferred digital dollar,” Allaire said in an interview last year.
Tether, on the other hand, earned $13 billion in profit last year, more than twice the earnings of BlackRock. The company makes its money by holding US Treasuries, using them to back every token it issues 1-to-1 with the dollar. Despite the profits, critics argue that Tether is a financial black box. The company only started releasing financial statements after being forced by New York regulators, and its reports remain far less transparent than Circle’s.
Unlike USDC, which holds most of its reserves in regulated institutions like Bank of New York Mellon, Tether has assets in Bitcoin, commercial loans, gold, and other investments. That, plus its offshore status, has made it the prime target for regulators.
Circle wins support from lawmakers and banks
Allaire’s strategy has been to build relationships with the US government and the financial sector while painting Tether as a national security risk. And guess what? It’s working. In December 2023, the European Union implemented a ban on offshore stablecoins, a decision that of course directly hit Tether. In April 2024, the US Treasury Department accused Tether of being used to fund Russia’s war machine. A few months later, billboards in Washington D.C. and Times Square appeared with the slogan “Tethered to Corruption,” part of a campaign branding the company as the next FTX.
Devasini believes Circle is behind the attacks. “They are behind every single attempt to bad-mouth Tether,” he said. Paolo Ardoino, Tether’s CTO, went further, accusing Circle’s allies of funding the smear campaign. Circle has continued its push for tighter regulations, meeting frequently with high-ranking officials in the Treasury and Congress. At a February 2024 hearing, a senior Circle executive said she hoped the US government was investigating Tether’s role in enabling “malign activities.” The Treasury even considered sanctioning Tether, a move that would lock it out of the US banking system. While that didn’t happen, lawmakers introduced a bill in April 2024 that would ban unregulated stablecoins. “I would choose Circle over Tether,” said the pro-crypto Sen. Cynthia Lummis once.
Tether’s survival hinges on the Trump administration
Despite the growing pressure, Tether isn’t going down without a fight, and Devasini has an important ally in the White House—Commerce Secretary Howard Lutnick. Lutnick, a longtime Wall Street figure, was confirmed as Commerce Secretary in February. Before that, his firm Cantor Fitzgerald held much of Tether’s reserves. In April 2024, Cantor invested directly in Tether’s holding company, a deal personally negotiated by Lutnick. After meeting with Devasini in Lugano, Lutnick allegedly promised to fight any bills that could harm Tether.
Trump has also turned pro-crypto, issuing an executive order in early 2025 to promote “lawful and legitimate dollar-backed stablecoins worldwide.” The order also created a presidential crypto working group, which includes Lutnick, to review potentially harmful regulations. But even with the Trump administration’s support, Tether is losing ground. The company’s growth slowed in mid-December 2024, especially after Coinbase and other exchanges delisted Tether in the EU. Meanwhile, Circle is expanding so fast, and USDC’s total supply finally recovered to pre-Silicon Valley Bank collapse levels in early February 2025.
Allaire has continued to strengthen Circle’s ties to traditional finance, as the company just moved into a new headquarters at the World Trade Center. Meanwhile, Devasini remains in Lugano, avoiding travel to the US. Behind closed doors, he has reportedly asked associates for information on Kim Dotcom’s extradition case, worried that he could face similar legal trouble. Cryptopolitan Academy: Coming Soon – A New Way to Earn Passive Income with DeFi in 2025. Learn More.