Tether’s U.S. Reentry Plan Marks Major Stablecoin Turning Point

Tether CEO Paolo Ardoino has reportedly announced plans for the world’s leading Stablecoin, USDT, to enter the US Market. The move comes shortly after the signing into law of the GENIUS Act by US President Donald Trump.

According to a report by Bloomberg, the Tether CEO revealed that the company was creating a domestic strategy to comply with the landmark legislation. Further reports indicate that stablecoin USDC maker Circle was also making similar plans.

Company to create new Stablecoin USDT

Tether’s plan to enter the US stablecoin market signals a departure from the company’s 2021 retreat. The firm was then required to pay fines exceeding $60 million due to regulatory issues in the United States.

The New York attorney general’s office barred the company from operating locally after reportedly making false reserve claims. The regulatory agency, the Commodity Futures Trading Commission (CFTC), also fined the firm for misleading the public about the Stablecoin’s backing.

According to the report, Tether will create a new stablecoin, USDT, the firm’s flagship dollar-pegged token, which will fully comply with the GENIUS Act. The new law includes statutes that outline the requirements for foreign issuers targeting the US stablecoin market. Tether issues the stablecoin USDT from its neighboring location in El Salvador.  Commenting, Ardoino stated:

“We’ll be working very, very hard to make sure we comply with the foreign issuer pathway within the GENIUS Act […] it’s crazy that sometimes people think Tether will not comply.”

Tether Ready to Undertake Reserve Audits

According to the newly signed GENIUS Act, foreign stablecoin issuers must follow a strict anti-money laundering (AML) regime, in addition to undertaking intricate audit reserves. It’s on record that USDT issuer has always spurned plans to undertake a full audit, something CEO Ardoino reveals the company is now willing to undertake. Ardoino further stated:

“We have three years to make sure this process can go through properly […] we are going to be very precise and very dedicated to that.”

GENIUS Act Creates New Opportunities

The fresh focus by stablecoin USDT maker Tether comes amidst growing competition from Circle, whose stock has recently surged over 500%. Moreover, it may appear that the newly signed GENIUS Act has finally created opportunities that were previously unavailable.

However, the signing into law of the new act, which prominent crypto executives, including Ardoino, attended, has opened a new chapter.  Ardoino added:

“We have three years to make sure this process can go through properly […] we are going to be very precise and very dedicated to that.”

Conclusion

Advertisement Banner

By helping to normalize the US stablecoin market, the signing of the GENIUS Act will, for the first time, help introduce crypto trading into the mainstream financial markets. While the executives of the world’s two stablecoin issuers, Paolo and Jeremy, have never been on the same page, both companies helped finance US President Donald Trump’s campaigns. It may be now time for them to reap where they sowed.

Read more about how New Stablecoin Lae in The US – How it will Impact Crypto 

Summary

• Tether CEO Paolo Ardoino has revealed plans for the Stablecoin USDT to enter the American market.
• The newly signed law has opened opportunities for stablecoin issuers that may not have been previously available.
• Tether announced that it could offer a new stablecoin specifically designed for the US market, following the provisions of the new law.

Frequently Asked Questions

What is the GENIUS Act?

The newly signed GENIUS Act is a law in the US that defines standards for stablecoins. The law defines a clear regulatory framework for local and foreign stablecoin issuers and users.

What are stablecoins?

Stablecoins are a type of cryptocurrency that maintains a stable value, as they are pegged to fiat currencies, such as the US dollar, or commodities like gold. Stablecoins are considered more stable than typical cryptocurrencies, which are subject to price volatility.

Why is the Act law important?

The new law introduces clarity and regulatory certainty for stablecoins, while also setting rules for issuers and consumers. The law is poised to reinforce the US’s dominance in digital finance.

What does the Act cover?

The GENIUS Act includes rules for stablecoin issuers, consumer protection, and general federal oversight.

Glossary of Key Terms

• USDT (Tether):
  A dollar-pegged stablecoin issued by Tether, designed to maintain a 1:1 value with the U.S. dollar. It is the most widely used stablecoin globally.

• Stablecoin:
  A type of cryptocurrency that aims to maintain a stable value by being pegged to traditional assets like fiat currencies (e.g., USD) or commodities (e.g., gold).

• GENIUS Act:
  A newly enacted U.S. law that establishes a regulatory framework for stablecoin issuance, including requirements for full reserve backing, audits, and anti-money laundering compliance for both domestic and foreign issuers.

• Reserve Audit:
  A process in which an independent party verifies that a stablecoin issuer holds sufficient reserves to back its tokens, ensuring transparency and trust.

• Circle:
  A U.S.-based fintech firm that issues the USDC stablecoin, known for its regulatory transparency and growing competition with Tether.

Reference

Bloomberg