Tether CEO Paolo Ardoino has confirmed that the company will comply with the newly signed GENIUS Act by President Donald Trump, ensuring that USDT can continue to operate within the United States. The announcement underscores the growing influence of U.S. legislation on global stablecoin issuers.
The GENIUS Act introduces rigorous compliance standards, particularly targeting foreign-based stablecoin providers. This move significantly affects Tether, the issuer of USDT, the world’s most widely used stablecoin with a current market cap of $160.92 billion and 24-hour trading volume of $168.54 billion, according to recent CoinGecko data.
“Tether intends to comply with the GENIUS Act and create a US-based stablecoin, but also hopes that USDT will be approved by GENIUS.”
— Paolo Ardoino, CEO, Tether (Source: Coindesk)
Tether’s response includes strategic adaptation: aligning with the GENIUS Act’s transparency mandates, including audited reserves and enhanced regulatory disclosures. This compliance will be essential if Tether is to retain legal and operational standing in the critical U.S. financial market.
Implications for the Stablecoin Sector
Industry experts note that the GENIUS Act could reshape stablecoin competition. If Tether undergoes structural changes to meet U.S. audit and reporting standards, it may face temporary shifts in investor confidence and possibly market dominance.
The move also hints at Tether launching a U.S.-based stablecoin specifically designed to comply with GENIUS requirements. While no details have been finalized, this new product could run parallel to USDT or potentially replace its role in the American ecosystem if USDT does not receive GENIUS Act approval.
Despite minor price fluctuations, USDT has maintained its peg and dominance, showing resilience amidst increasing regulatory pressures. However, analysts caution that compliance with the GENIUS Act could drive users toward more transparent stablecoins if Tether’s adjustments aren’t swift and clear.
This development marks a pivotal moment not only for Tether but also for the broader stablecoin landscape, as lawmakers across the globe watch closely how major issuers adapt to formalized regulatory frameworks in large markets like the U.S.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are volatile and risky. Always conduct your research before making any investment decisions.
