Tether Approved to Issue USDT in US Following GENIUS Act

Tether, the issuer of the widely used stablecoin USDT, has received approval to issue USDT in the United States market. This development follows the signing of the GENIUS Act by President Donald Trump, which provides a regulatory framework for stablecoins. The GENIUS Act includes a provision known as the foreign issuer clause, allowing Tether to maintain its base overseas while minting coins that are legal in the U.S. market.

Tether's CEO, Paolo Ardoino, addressed the media at the White House, emphasizing the company's commitment to complying with new regulations. Ardoino announced that Tether plans to introduce another stablecoin entirely rooted in the U.S., which will help the company adhere to local requirements. This move is significant as Tether has never issued USDT in the United States before, only in other nations.

Circle, Tether's main rival, responded promptly to the news. Circle's CEO, Jeremy Allaire, highlighted that the new law validates Circle's approach over the past years. Circle, a New York-based company, has always collaborated with regulators and publishes audits that reveal the amount of money backing its stablecoin, USDC. This transparency has helped Circle gain the trust of large banks and investors, positioning it as a safe option in the stablecoin market.

The GENIUS Act is expected to have a significant impact on the crypto market. The increased availability of USDT on U.S. exchanges may simplify trading in Bitcoin by providing more stablecoins. However, this could also lead to market instability, as large transactions may cause unexpected price fluctuations. The new regulations may also pose challenges for smaller crypto firms, potentially leading to closures or mergers.

The competition between Tether and Circle is intensifying. Tether now needs to demonstrate compliance with new rules and disclose its reserves, while Circle aims to maintain its reputation as the safe option. The actual challenge for Tether will be managing U.S. regulations and proving its commitment to transparency and cooperation with authorities. Circle, on the other hand, will continue to showcase its adherence to regulatory standards.

This development marks a turning point for stablecoins in the United States. Other countries may follow suit with their own regulations, but for now, the focus is on what Tether and Circle will bring to the stablecoin narrative. The GENIUS Act sets the stage for global stablecoin rule changes, and the actions of these two major players will shape the future of the stablecoin market.