Tether, a notable player in the cryptocurrency market, has minted $3 billion of the USDT stablecoin in a single day. This increase in supply occurs as new rules for stablecoins are set to be introduced in the US.
Tether's Supply Increase
Blockchain tracking platform Lookonchain reported that Tether minted an additional $1 billion worth of USDT, bringing the total to $3 billion on July 17. Market experts suggest that this move aims to boost liquidity and support recent price fluctuations of Bitcoin (BTC).
Potential Impact of the GENIUS Act on Tether
The proposed rules in the GENIUS Act could pose significant challenges for Tether, which currently controls over 66% of the stablecoin market. Unlike complete audits, Tether provides only attestations, and its reserves include Bitcoin and precious metals. If enacted, these rules may not be sufficient for them to operate legally in the US. However, the legislation does offer a transition period, giving Tether time to adjust its reserves.
Potential Gains for Ripple and Circle
Ripple's stablecoin, RLUSD, appears poised to comply with the new regulations. Ripple has applied for a national trust bank charter and a Federal Reserve master account. Additionally, BNY Mellon will serve as the official custodian of RLUSD reserves, indicating readiness to meet the GENIUS Act requirements.
The $3 billion minting of USDT marks a significant event in light of the upcoming changes in the US stablecoin market, potentially reshaping the competitive landscape between Tether and more regulated alternatives.
