The CEO of Tether announced intentions to bring USDT in full compliance with the GENIUS Act and to introduce a stablecoin tailored to the US market. As it prepared for the new law’s full application, Circle reiterated its completely compliant ecosystem.
Tether’s Dual-Track Strategy for GENIUS Act Compliance
The dual-track strategy will be implemented by Tether, according to CEO Paolo Ardoino. Along with bringing USDT in line with the “foreign issuer” approach of the GENIUS Act, they will also develop a specialized stablecoin located in the United States. This is Tether’s first formal pledge to participate directly in the U.S. market under the new rules and regulations.
According to Ardoino, Tether’s plan is to fulfill stringent anti-money laundering regulations and finish all reserve audits. He stressed that the corporation would pursue this with accuracy and determination and that it has a three-year schedule to accomplish it.
Even though USDT is now only available in El Salvador, international stablecoins may legally function in the US according to the GENIUS Act. Money transfers across borders could be USDT’s main focus, according to Ardoino. The proposed U.S.-based stablecoin, on the other hand, would aim squarely at American consumers. As a result of the Trump administration’s more favorable policies, stablecoin competition is heating up in the US.
First of its kind, the GENIUS Act establishes U.S. government regulations for stablecoins. Moreover, Stablecoins must provide all relevant information and maintain full reserves. Some have voiced concerns that Tether, the dominant stablecoin with $156 billion in circulation, would have difficulty complying with these regulations.
The fact that it has a history of delivering partial reports and has a combination of bitcoin and precious metals in its reserves is a cause for caution. But Ardoino maintained that Tether isn’t leaving. He took to X at the White House ceremony to boast about the 160 billion USDT that Tether has issued globally and to express excitement about the American market.
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