President Donald Trump's signing of the GENIUS Act necessitates that foreign stablecoin issuers such as Tether ensure compliance to operate in the U.S. market.
Tether's Commitment to GENIUS Act Compliance
The GENIUS Act imposes stringent requirements on stablecoin issuers, impacting Tether's USDT significantly. CEO Paolo Ardoino has stated plans to adhere to these regulations to maintain Tether's presence in the U.S. market. This marks a crucial point for Tether as regulatory scrutiny intensifies.
Tether's Strategic Adaptation
Tether's strategic adaptation involves complying with the GENIUS Act for USDT to operate legally in the U.S. Paolo Ardoino announced plans for full compliance, aiming for audited reserve standards required by the Act.
Market Dynamics Changes
Amid increased regulatory focus, Tether's commitment to reform aligns with past regulatory periods where non-compliant stablecoins faced liquidity declines and delistings. Tether USDt (USDT) maintains a market cap of $160.92 billion with a trading volume of $168.54 billion in 24 hours, despite minor price shifts.
Tether's commitment to complying with the GENIUS Act might require significant internal changes, potentially altering the competitive landscape in the stablecoin market.
