Tether, the issuer of the world’s largest stablecoin USDT, is planning to radically change its strategy in light of new regulations. The company aims to become the largest Bitcoin miner by 2025.
Strategic Changes at Tether
CEO of Tether Paolo Ardoino announced the company’s plans to align its USDT token with the new standards set by the recently passed GENIUS Act in the United States. The legislation aims to create a global compliance framework for stablecoins, requiring full reserve backing and transparency from issuers.
Investments in Bitcoin Mining
Tether is actively investing in Bitcoin mining, aiming to become a leader in the sector. Ardoino has boldly stated, "Realistically, by the end of this year, Tether will become the biggest bitcoin miner out there." The company already has more than 15 mining facilities thanks to partnerships with Latin American governments.
Challenges of New Regulations
With the introduction of the new GENIUS Act, Tether faces the need to comply with stringent regulatory requirements within the next 18 to 36 months. Failure to comply may result in the company being forced to exit the U.S. market. Tether has not yet disclosed its share of the total Bitcoin hashrate, raising further questions.
Tether is at a crucial crossroads: to adapt its existing USDT to meet new requirements, launch a new regulated stablecoin, or potentially exit the American market. Meanwhile, competitors like USDC are poised to capitalize on any missteps by the company.
