The post Pi Protocol Aims to Challenge Tether’s Dominance Amid Evolving US Stablecoin Regulations appeared on BitcoinEthereumNews.com.

Reeve Collins, co-founder of Tether, is launching Pi Protocol to democratize stablecoin minting and offer users yield incentives. US regulations may challenge Tether while Pi Protocol aims for compliance with transparent reserves and Treasury bond-backed assets. Pi Protocol could gain traction through regulatory shifts and potential name recognition but faces an uphill battle against Tether’s dominance. Reeve Collins unveils Pi Protocol, a new stablecoin aiming to reshape the market dynamics with compliance and user incentives amid looming regulations. Can Pi Protocol Compete Against Tether? Reeve Collins has witnessed significant changes in the stablecoin market since co-founding Tether in 2013. As the initial CEO, he played a pivotal role in establishing Tether’s presence in the crypto ecosystem before selling the company to Bitfinex’s owners in 2015. Now, he aims to revolutionize the landscape by introducing a competitive alternative: Pi Protocol. “We view Pi Protocol as the evolution of stablecoins. Tether has been extremely successful in showcasing demand for stablecoins. But they keep all the yield. We believe 10 years later the market is really ready to evolve,” Collins stated in a recent interview. Unlike Tether, Pi Protocol intends to democratize the minting process of stablecoins through innovative smart contracts, enabling users to submit their own collateral while earning yield from their contributions. This model incentivizes user participation and fosters a healthier ecosystem. Taking Advantage of Regulatory Timing Collins highlighted the current regulatory environment as a significant opportunity for Pi Protocol’s success. With increasing pressure for a regulatory framework governing stablecoins in the U.S., the potential constraints could significantly impact Tether’s operations. Tether’s previous evasions regarding independent audits and reliance on volatile assets, such as Bitcoin, may leave it vulnerable to compliance challenges. Pi Protocol’s strategy focuses on transparent reserves, particularly prioritizing Treasury bonds while remaining open to other forms of collateral.…

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Filed under: News - @ February 19, 2025 12:21 am