Tether Plans U.S. Market Entry Under GENIUS Act

Tether, the issuer of the USDT stablecoin, has announced plans to enter the U.S. market under the new regulatory framework established by the GENIUS Act. The company's CEO, Paolo Ardoino, confirmed in an interview that Tether aims to obtain foreign issuer status for its stablecoins in the United States, complying with the requirements set forth by the GENIUS Act, which was signed into law by President Donald Trump on July 18.

To meet the new regulatory standards, Tether will implement a revised audit regime and make changes to USDT’s reserve structure. Ardoino highlighted that the company's $13 billion net income from the previous year provides sufficient resources for these adjustments. The company has appointed CFO Simon McWilliams, who was brought on board in March, to engage an auditor from one of the Big Four accounting firms to ensure compliance with the new regulations.

Ardoino estimated that it will take approximately three years for Tether to fully enter the U.S. market. The company intends to launch a version of USDT specifically designed for the United States and institutional investors. This new product will be focused on payments and will prioritize extremely high efficiency, catering to the needs of institutions that demand ultra-efficient markets.

In May, Ardoino had mentioned the possibility of issuing a U.S. stablecoin as early as 2026. He reiterated that USDT’s primary business interests remain outside of the United States, with a customer base of three billion people who lack access to traditional banking systems. Ardoino expressed confidence that adapting to the new rules would be straightforward for the company.

Following the introduction of MiCA regulations in the EU, Tether has shifted its focus to supporting third-party regulated stablecoin projects through its Hadron platform. This move aligns with the company's strategy to comply with evolving regulatory landscapes globally.

Jeremy Allaire, co-founder and CEO of Circle, the issuer of USDC, welcomed the passage of the GENIUS Act, stating that it legitimizes Circle’s approach to doing business. Allaire emphasized that the U.S. stablecoin sector was already evolving rapidly before the new regulations were approved, with numerous large technology companies, trading firms, and financial institutions expressing interest in entering the market. The implementation of the GENIUS Act is expected to serve as a green light for these institutions, further accelerating the growth of the stablecoin sector in the United States.

The GENIUS Act will take effect six months after President Trump's signature, or 120 days after regulators publish implementing rules, whichever comes later. This regulatory framework is set to provide a clearer path for stablecoin issuers to operate within the U.S. market, fostering greater transparency and compliance.