Tether CEO shared plans to launch a US-specific stablecoin, as well as making USDT fully compliant under the GENIUS Act. Meanwhile, Circle reaffirmed its fully compliant ecosystem as it anticipated the full implementation of the new law.
Tether’s USDT to Enter U.S. Market Alongside New Local Coin
Tether CEO Paolo Ardoino confirmed that the company will take a dual-track approach. They will launch a dedicated U.S.-based stablecoin while also aligning USDT with the GENIUS Act’s “foreign issuer” pathway. The move marks Tether’s first official commitment to direct U.S. market participation under the new regulatory framework.
Ardoino said Tether’s strategy aims to meet strict anti-money laundering requirements and finally complete full audits of its reserves. He emphasized that the company has a three-year timeline to achieve this and will approach it with precision and dedication.
While USDT is currently issued in El Salvador, the GENIUS Act provides a route for foreign stablecoins to operate legally in the U.S. Ardoino added that USDT may primarily serve cross-border remittances. In contrast, the planned U.S.-based stablecoin would target domestic users directly.
The stablecoin competition in US is rising as regulations become more and more favorable under Trump administration.
The GENIUS Act creates the first federal rules for stablecoins in the U.S. It requires that stablecoins have full reserves and provide clear information. Critics claim that Tether, which has $156 billion in circulation and accounts for approximately two-thirds of the global stablecoin market, may struggle to meet these rules. This concern arises from its past of providing only partial reports and its use of a mix of bitcoin and precious metals in its reserves.
Yet Ardoino insisted Tether isn’t going anywhere. At the White House signing, he posted on X, expressing pride in Tether’s 160 billion USDT issued worldwide and optimism about the U.S. market.
“Now that President Trump has led the United States to embrace digital assets, we believe we can increase tenfold and cement the dollar’s global dominance,” he wrote.
Circle Leans Into Compliance as GENIUS Act Reshapes Stablecoin Market
Circle, which issues USDC, appears unfazed by Tether’s expanded plans. Jeremy Allaire, Circle CEO, welcomed GENIUS Act as validation of Circle’s long-standing strategy to operate transparently under U.S. regulations.
Allaire underlined that significant organisations around the world have come to trust Circle’s model, which is based on rigorous reserve procedures and public audits. He pointed out that Circle has established trust with leading institutions, and that the GENIUS Act will only make that stronger.
Notably, the GENIUS Act is generally viewed as supporting Circle’s long-standing marketing of USDC as the safer, fully regulated substitute for Tether. Circle has mostly already complied with the act’s requirements that issuers support stablecoins with cash or short-term Treasuries and submit to yearly audits.
The crypto bill could spark a wave of audits, prompting foreign and domestic issuers to meet higher standards. For Tether, launching a U.S.-specific stablecoin and bringing USDT into compliance represents both a challenge and an opportunity. For Circle, the law is seen as confirmation of its compliance-first approach.
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Michael Adeleke
Michael Adeleke is a passionate crypto journalist known for breaking down complex blockchain concepts and market trends into clear, engaging narratives. He specializes in delivering timely news and sharp market analysis that keeps crypto enthusiasts informed and ahead of the curve. With an engineering background and a degree from the University of Ibadan, Michael brings analytical depth and precision to every piece he writes.
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