Tether CEO Affirms Approach Towards Resuming U.S. Operations Following Trump's Approval of GENIUS Act
Tether, the issuer of the world's largest stablecoin, USDT, is making a comeback to the US market following the passage of the GENIUS Act. The company's CEO, Paolo Ardoino, confirmed the reentry strategy during a Bloomberg interview, focusing on institutional payments and settlements.
At the GENIUS Act signing ceremony, Ardoino was joined by executives from major crypto firms including Coinbase and Gemini. The Act provides a regulatory framework for stablecoin issuers to operate in the US market, allowing banks and fintechs to issue or use stablecoins while providing clear guidelines for such activity.
Tether's reentry strategy into the US market is based on launching a new, fully compliant, U.S.-based stablecoin by late 2025 or early 2026. This stablecoin will target institutional payments, interbank settlements, and trading, aligning with the regulatory requirements of the GENIUS Act. The new product will undergo full annual audits by a Big Four accounting firm, moving from quarterly attestations, in response to the Act.
In contrast, Circle's USDC stablecoin has dominated the US stablecoin market with a circulation of $65 billion. Circle has proactively obtained regulatory approvals, including Money Transmitter Licenses across 46 states and has been registered with FinCEN since 2015. USDC is seen as the leading regulated stablecoin in the US, benefiting from transparency and compliance that have allowed it to expand both domestically and internationally.
Tether's USDT, with a global circulation of $162 billion, has been largely excluded from the regulated US market due to past legal challenges and regulatory scrutiny. However, Tether's strong international presence in Latin America, Africa, and Asia gives it an edge over US-based stablecoin issuers in understanding local markets.
Ardoino has hinted that the company plans to leverage its global reach to expand its influence in the US market. He also stated that Tether is ready to engage directly with US regulators. The company's reentry into the US market signals industry-wide support for the new regulatory framework.
In the battle for dominance in the US stablecoin market, Tether is making a strategic pivot to align with U.S. regulatory demands, hoping to reclaim and grow its market share domestically by offering a compliant stablecoin tailored for institutional use. Meanwhile, Circle's USDC continues to hold strong dominance in the US market due to its earlier and consistent regulatory compliance and transparent operations.
[1] GENIUS Act provides regulatory framework for stablecoin issuers to operate in the US market. [2] Circle's USDC stablecoin operates under clearer regulatory compliance. [3] Tether plans to expand USDT's role beyond trading into interbank settlement and cross-border payments. [4] Tether's new, fully compliant, U.S.-based stablecoin will undergo full annual audits by a Big Four accounting firm.
In the context of the GENIUS Act, Tether is positioning its new, U.S.-based stablecoin for institutional use, aiming to expand beyond trading into areas like interbank settlement and cross-border payments, and committing to annual audits by a Big Four accounting firm. In comparison, Circle's USDC stablecoin is currently seen as the leading regulated stablecoin in the US, operating under clearer regulatory compliance due to earlier and consistent adherence.
