Tether Accelerates U.S. Re-entry Under GENIUS Act Shifts Institutional Focus

Tether is accelerating its re-entry into the U.S. market under the newly enacted GENIUS Act, which establishes a regulatory framework for stablecoin operations. The company, operator of the world’s largest stablecoin, has shifted its focus to institutional clients, emphasizing cross-border payments and interbank settlements. Paolo Ardoino, Tether’s chief technology officer, stated the firm is “well in progress” with its U.S. strategy, prioritizing services tailored to financial institutions amid heightened regulatory clarity [1]. This move follows Tether’s 2021 retreat from New York amid legal scrutiny and reflects its adaptation to a evolving legal landscape. The GENIUS Act, signed into law on July 18, mandates annual reserve audits for stablecoin issuers, requiring Tether to engage a Big Four accounting firm to ensure compliance [2].

The company’s expansion underscores its $13 billion net profit for 2024, supported by $13.7 billion in blockchain infrastructure investments. These resources will fund U.S. compliance efforts and market infrastructure development. Tether’s institutional focus aims to differentiate it from retail-oriented rivals like Circle’s USDC. Ardoino highlighted the need for a “domestic strategy” targeting interbank settlements and trading, positioning the stablecoin as a tool for financial institutions seeking efficient digital asset solutions [3]. This approach aligns with the GENIUS Act’s provisions, which incentivize innovation while imposing oversight to mitigate risks such as financial instability.

However, Tether faces intensifying competition from U.S. banks launching their own stablecoins, threatening its market share in the institutional space. The company’s strategy to dominate cross-border transactions and business settlements aims to capitalize on gaps in traditional banking systems. Analysts note that this shift could influence decentralized finance (DeFi) protocols and broader cryptocurrency markets, though Tether remains noncommittal about its impact on Bitcoin and Ethereum [4]. The firm’s avoidance of a public offering (IPO) further signals a long-term focus on regulatory alignment and infrastructure, rather than short-term fundraising [5].

Tether’s U.S. re-entry also reflects broader trends in stablecoin regulation. Lawmakers are increasingly balancing innovation with oversight, recognizing stablecoins’ role in global finance while addressing concerns over transparency. The company’s emphasis on institutional-grade products aligns with growing demand for regulated digital assets in sectors like trade and banking. Yet challenges persist, including rebuilding trust with regulators and stakeholders after past controversies. Ardoino confirmed the firm is “nearly ready” to launch U.S. services, with a market-entry roadmap slated for announcement within two months [6].

The GENIUS Act’s impact on Tether’s operations extends beyond compliance. By enabling a legal pathway for stablecoin innovation, the legislation allows the company to coexist with its international operations while adhering to federal standards. This dual approach positions Tether to leverage regulatory clarity without compromising its global footprint. As U.S. regulators refine crypto frameworks, Tether’s institutional focus could serve as a case study for how legacy stablecoin projects adapt to stringent oversight. For now, the company’s execution of its strategy—centered on efficiency, compliance, and institutional demand—remains its primary focus [7].

Source:

[1] [Tether CEO outlines US strategy following Trump's crypto legislation](https://www.investing.com/news/cryptocurrency-news/tether-ceo-outlines-us-strategy-following-trumps-crypto-legislation--bloomberg-93CH-4149108)

[2] [Tether Re-Enters U.S. Market Under GENIUS Act](https://www.ainvest.com/news/tether-enters-market-genius-act-develops-stablecoin-institutions-2507)

[3] [Tether Prepares for U.S. Market Operations Following New Legislation](https://www.binance.com/en/square/post/07-24-2025-tether-prepares-for-u-s-market-operations-following-new-legislation-27370408759578)

[4] [Tether Gains Momentum in U.S. Expansion as GENIUS Act Drives Institutional Stablecoin Push](https://www.ainvest.com/news/tether-gains-momentum-expansion-genius-act-drives-institutional-stablecoin-push-2507)

[5] [Tether Eyes US Comeback With Institutional Focus, IPO Off the Table](https://www.ccn.com/news/crypto/tether-us-comeback-institutional-focus-ipo-off-the-table/)

[6] [Tether CEO Confirms Company Nearly Ready for US Return After Trump Signs Genius Act](https://www.coinspeaker.com/tether-ceo-confirms-company-nearly-ready-for-us-return-after-trump-signs-genius-act/)

[7] [Tether CEO outlines US strategy following Trump's crypto legislation](https://www.investing.com/news/cryptocurrency-news/tether-ceo-outlines-us-strategy-following-trumps-crypto-legislation--bloomberg-93CH-4149108)