- Tether to launch USDT in the U.S. under new legislation.
- Creation of a fully compliant U.S.-based stablecoin.
- Competition with Circle’s USDC anticipated.
Paolo Ardoino, CEO of Tether, announced plans to introduce USDT in the United States under the GENIUS Act, launching a new U.S.-native stablecoin. The statement came at the White House, confirming efforts to comply with new regulations.
This development underscores regulatory shifts impacting the stablecoin market and highlights the strategic moves by Tether and Circle. It could reshape market dynamics and investor trust in digital finance.
Introduction
Tether, led by CEO Paolo Ardoino, plans to align with the GENIUS Act compliance pathway to introduce USDT in the U.S. The announcement follows recent legislative changes signed by former President Trump.
The company, which reported $13 billion net income last year, is allocating resources to ensure compliance and transparency through audits. This includes restructuring reserves to hold U.S. government bonds and highly liquid assets, deviating from its previous asset composition.
“We’ll be working very, very hard to make sure we comply with the foreign issuer pathway within the GENIUS Act. It’s crazy that sometimes people think Tether will not comply.” — Paolo Ardoino, CEO, Tether
Competitive Landscape
The introduction of a U.S.-compliant stablecoin by Tether is likely to influence the competitive landscape with Circle’s USDC, already known for regulatory compliance. Enhanced transparency and audit processes are strategic actions anticipated to attract institutional interest. Moreover, Tether’s entry could significantly alter stablecoin liquidity and affect DeFi protocols using USDT as collateral.
The broader implications extend across financial, regulatory, and technological sectors. The GENIUS Act aims to elevate the U.S. as a leader in digital assets, prompting increased confidence from banks and investors. Historical trends indicate that regulatory changes can lead to industry shifts, as seen during the EU’s MiCA implementation. Such movements typically affect DeFi ecosystems, trading pairs, and overall market stability.
