Tether, the issuer of the stablecoin USDT, has confirmed its commitment to comply with the GENIUS Act requirements, signed into law in 2025. CEO Paolo Ardoino highlighted the importance of this step to avoid loss of access to the U.S. market.
Tether Prepares for GENIUS Act Compliance
CEO Paolo Ardoino stated the company's readiness to meet the GENIUS Act requirements related to anti-money laundering and reserve audits for foreign stablecoin issuers. Despite existing skepticism, Tether plans to complete this process within three years. Ardoino noted, 'We will do our utmost to ensure compliance with the GENIUS Act for foreign issuers. Some people think Tether will not comply, which is a ridiculous idea.'
USDT's Market Status
USDT's compliance with the GENIUS Act is critical for maintaining access to the U.S. market. Non-compliance risks exclusion from the U.S., potentially benefiting competitors like USDC. Currently, USDT has a market value of 160.89 billion USD, indicating its wide use, particularly on the TRON platform. Tether's reserve composition faces challenges due to the GENIUS Act's demands for USD-backed holdings, contrasting with its existing reserves that include Bitcoin and precious metals.
Historical Context of the GENIUS Act
The GENIUS Act reflects an evolution in regulatory scrutiny, including past disputes like Tether’s 2021 settlement with New York authorities over reserve misrepresentations. Data from CoinMarketCap on July 19, 2025, shows Tether USDt (USDT) priced at $1.00, with a market cap of 160.89 billion USD, representing 4.18% market dominance. Trading volume in the last 24 hours reached 133.12 billion USD, a 20.12% decrease. Tether has not observed significant price fluctuations recently, with minor changes logged across 90 days.
Compliance with the GENIUS Act will be crucial for Tether to maintain its market position amidst increasing regulatory scrutiny. Success in this area is important for both the company and its users.
