Recent actions by Tether to increase USDT supply alongside related regulatory initiatives have caught the attention of financial markets and experts.
USDT Minting and Market Reaction
Tether minted $1 billion USDT on the Ethereum blockchain just 30 minutes prior to the anticipated Federal Open Market Committee (FOMC) meeting. Less than a month after its previous minting, $225 million from this new issuance was transferred to the Bitfinex exchange, associated with Tether. Analysts noted that large USDT mints in the past led to subsequent price increases in Bitcoin.
GENIUS Act for Stablecoin Regulation
On June 17, the U.S. Senate voted with a bipartisan majority of 68 to 30 to pass the GENIUS Act, which proposes a new legal framework for the issuance and examination of stablecoins. The act mandates that public companies with a market cap over $50 billion undergo yearly audits and imposes stringent criteria for foreign issuers, like Tether.
Presidential Support and Implications for Crypto Industry
During discussions of the GENIUS Act, the White House expressed full support for both this and its sister bill, the CLARITY Act. Lawmakers are seeking to finalize the passage before the July congressional recess. Senator Bill Hagerty, who sponsored the amendment, noted that the act positions the U.S. as a leader in cryptocurrency regulation.
Tether's recent actions and the passage of the GENIUS Act signal potential changes in stablecoin regulation and their role in financial markets.
