Tether poaches PayPal exec to engage with lawmakers

Tether has appointed former PayPal executive Jesse Spiro as its head of government affairs to lead policy and engagement with lawmakers, regulators, and key stakeholders.

Stablecoin issuer Tether (USDT) is expanding its government relations efforts with the appointment of Jesse Spiro, a former PayPal executive, as its new head of government affairs. In a Sept. 13 press release, the company said Spiro will oversee Tether’s policy initiatives and engagement with lawmakers, regulators, and key industry stakeholders.

Prior to Tether, Spiro led regulatory relations for PayPal’s blockchain and digital currencies business. Before that, he served as chief government affairs officer at Chainalysis, a blockchain forensic firm, which in May entered into a collaboration with Tether to monitor USDT transactions on the TRON blockchain.

“The ever-evolving legislative and regulatory landscape will continue to require strong collaboration between the public and private sectors.” Jesse Spiro

Commenting on Spiro’s appointment, Tether chief executive Paolo Ardoino said Spiro’s expertise in government relations and blockchain technology will be “invaluable as we continue to navigate the complex and rapidly changing regulatory environment.”

Tether seeks to reinforce its compliance commitment

The appointment comes amid heightened scrutiny from U.S. lawmakers regarding Tether’s stablecoin and concerns about its potential misuse by countries like Russia, Iran, and North Korea to circumvent Western sanctions.

Tether’s recent actions seem aimed at addressing these concerns, following allegations that Russian entities have been using USDT for some time now to evade sanctions and acquire components for drones and other equipment.

The development also follows the recent formation of the T3 Financial Crime Unit, a joint initiative by TRON, Tether, and TRM Labs to combat illicit activity related to USDT on the TRON blockchain. The unit aims to leverage data, technology, and collaboration with law enforcement to disrupt illegal activities.