Source: Anthony Pompliano Podcast

Compiled by: Felix, PANews

Bo Hines, the CEO of Tether USAT (a USD-backed stablecoin launched by Tether and regulated in the United States), is also a former White House cryptocurrency advisor who was involved in shaping U.S. digital asset policy during key moments in the industry's development.

Recently, Bo Hines was interviewed at the New York Bitcoin Investor Week event, where he revealed details about his involvement in cryptocurrency policy at the White House and discussed topics such as the proliferation of stablecoins and why user experience is more important than yield.

PANews has organized the highlights of the conversation, below are the details.

Host: You previously worked at the White House and are now the CEO of Tether USAT. When I think of your significance in the crypto industry, there are several major events that connect with you. One of them is your push for the completion of the Bitcoin strategic reserve. You achieved a lot of "transparency" (a pun referring to the Clarity Act) in the current government's crypto policy. Talk about your experience handling crypto matters at the White House; how do you view the achievements you made when you left to join Tether?

Bo Hines: That time was very enjoyable. With David's involvement, we made it our mission to advance with "technology speed" (fast), and I think we succeeded. Patrick was my deputy then and has now taken over my previous position. We tried to accomplish as much as possible at lightning speed. Considering the nature of the political cycle, we felt we had to seize momentum early, and we did. The biggest issue we faced at the time was: which bill to advance first? That was a debate between the Genius Act and the Clarity Act.

Clearly, we succeeded in getting the Genius Act passed last July, but the debate over the Clarity Act continues. We established the strategic Bitcoin reserve through an executive order, and additionally, the President's Digital Asset Working Group report was released, which is the most comprehensive digital asset regulatory framework ever.

With the Genius Act in place, stablecoin regulation provided us with the necessary inflow and outflow channel to achieve the coveted 24/7 round-the-clock market. I had a great time there. After the passage of the Genius Act, I felt it was time to leave. On that bill, I somewhat played the role of a "bulldozer," so it was appropriate for a new face in the next phase. After the bill was released, I decided to step down, which prompted me to become the CEO of USAT.

Host: Speaking of the Clarity Act, everyone is very concerned about whether it will pass. Someone said yesterday that the probability of it passing is 60%. How important is this for the industry? Would the industry be okay if it doesn't pass?

Bo Hines: I believe it is extremely important. It is the last piece of the overall blueprint. I think the probability of it passing is between 80% and 90%. Now, only a few minor details need to be finalized, with the biggest disagreement being the user experience (UX) structure.

The media has been discussing the yield battle between banks and crypto natives. I truly feel that this is not a yield battle, but a user experience battle. In other words, do you have to be a bank chartered by the OCC (Office of the Comptroller of the Currency) and do you have to have an independent platform to pass on yields to customers? This really only involves one participant in the industry. Most people in the crypto space have reached a consensus that banks are beginning to realize the prevalence of stablecoins; integration is about to begin. I believe David and Patrick can find the perfect balance.

Host: Talk about USAT and what you are doing.

Bo Hines: Tether is undoubtedly an important player in the crypto ecosystem. We currently have about 530 million customers, growing by about 30 million each quarter. We are the 13th largest holder of gold globally. At the same time, within Tether, there are also staunch Bitcoin maximalists. It is a very unique company: only 300 employees, with profits reaching $10 billion in 2025. In the new world set by the Genius Act, we decided to launch a U.S. stablecoin product that complies with the Genius Act standards, serving institutions.

Our goal is to leverage these 530 million global users to connect emerging markets with U.S. capital markets. Tether is not just a stablecoin company; it is also an active investor in the tech field, with investments ranging from robotics to infrastructure. For those who love Bitcoin, the integration of stablecoins is a huge boon, as it provides an inflow and outflow channel, allowing people to trade Bitcoin and other assets more efficiently.

Host: Saying Tether is a major tech investor is an understatement. Every time I talk with Paulo, I learn about the latest developments in brain-computer interface companies and various other projects. Could you briefly describe the benefits of establishing these channels? What goals do U.S. institutions currently have that are unattainable due to technological gaps? Or, how do you pitch these channels to these institutions?

Bo Hines: Transferring funds in the U.S. is still very inefficient. Our payment channels are 95% more efficient than other parts of the world, but they are not cost-effective and are restricted in terms of the time window for large transfers.

The adoption of stablecoins will completely change all of this. From a settlement perspective, whether intra-bank or inter-bank, it will allow banks in countries like South Korea to participate in the U.S. capital markets even after trading hours on Friday afternoon because of the settlement mechanism.

The competition now is about infrastructure. You must build a blockchain that can support this scale and is cost-effective. The adoption of stablecoins at the institutional level can save costs for banks and merchants. Settlement cycles will shift from T+2 and T+1 to T+0.

For consumers, it is an excellent remittance tool. In the future, you might see payroll companies paying salaries directly in stablecoins. You can program it to send 10% of your paycheck to Latin America or Asia automatically every day. Our goal is to significantly change this cost structure in the coming years.

Host: Let's talk about the yields of stablecoins; there is a lot of debate and trade-offs surrounding this.

Bo Hines: Regarding yield, Tether maintains neutrality. Because our business model does not rely on distributing yields, we provide the deepest liquidity and the best distribution capability. Our market capitalization is approximately $185 billion.

The core of this issue is: can you simultaneously be a broker, an exchange, and a bank? Some refer to it as "shadow banking," which is also why the banking industry is starting to feel nervous and wants to protect its territory. The solution is straightforward: obtain an OCC license. This way, you can share yields with customers like a bank. Currently, the OCC is moving very quickly in issuing bank charters to crypto-native companies.

Host: What other financial services do you plan to offer to these 530 million users?

Bo Hines: I believe that in the next 5 to 10 years, there will be large-scale integration of public chains and stablecoins. Tether is developing a WDK (Wallet Development Kit). We believe that controlling the inflow channel for customers is extremely important. You will see various financial services packaged into these wallets. Tether's mission over the past 7 years has been to provide access to those who can't directly access financial tools.

Host: You mentioned again that you are Bitcoin maximalists. Specifically, how does Tether support Bitcoin?

Bo Hines: We love Bitcoin. Bitcoin is part of our reserves. We are deeply involved in Bitcoin mining, trading, and ecosystem building. Stablecoins are the "first step" for people to access Bitcoin; once users are familiar with on-chain transfers, they often choose Bitcoin as their preferred investment. With the proliferation post-Genius Act, stablecoins will become the starting point for people entering the world of digital assets. We have already seen U.S. banks allow their wealth managers to allocate Bitcoin positions for clients, and widespread adoption is just beginning.

Host: How is Tether's transparency and reserve structured?

Bo Hines: Tether's reserves currently mainly consist of U.S. Treasury bonds, gold, and Bitcoin. Currently, Tether is the 17th largest holder of U.S. Treasuries (including all sovereign nations) and plans to enter the top 10 this year. We are increasing the proportion of U.S. Treasuries in our reserves to meet the compliance standards of the Genius Act.

Host: What concerns do you have for the future?

Bo Hines: Privacy issues. This is what users desire, but it also needs to satisfy regulations. How to protect privacy while leveraging this technology will be an important topic in the coming years.

Host: What are the differences and synergies between USAT and the international version of Tether?

Bo Hines: Our goal is to achieve interoperability between products. The international version of Tether (USDT) is the issuer, while the U.S. product (USAT) is issued by Anchory Digital Bank, which is a U.S. bank fully regulated by the OCC.

The reserves of the two are separate, but we can use technology to create a seamless perception for users. Whether through the issuer or liquidity pools of exchanges, we are confident in making this cross-border transition smooth and unblocked.

Further reading: 29-year-old crypto mogul Bo Hines: From White House crypto "liaison" to rapidly assuming leadership of Tether's U.S. stablecoin

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