Tether Reenters U.S. Market After GENIUS Act, USDT Supply Surges 18% to $162B

Tether, the world’s largest stablecoin issuer, has reignited its efforts to establish a presence in the U.S. market, signaling a strategic pivot following years of regulatory setbacks. CEO Paolo Ardoino confirmed the shift in a Bloomberg interview, attributing it to the recent enactment of the GENIUS Act—a landmark stablecoin legislation signed into law by President Donald Trump on July 17, 2025. The act aims to streamline regulatory frameworks for stablecoin issuers, potentially enabling banks, payment networks, and tech firms to create their own digital tokens. Tether’s renewed focus on the U.S. institutional market includes expanding its U.S. Dollar-backed token, USDT, for payments, interbank settlements, and trading, according to Ardoino [1].

The company’s reentry marks a dramatic reversal from its 2021 retreat, when it faced a $60 million settlement with U.S. regulators and was barred from operating in New York. At the time, authorities accused Tether of misleading claims about its reserve assets and misrepresenting the backing of its stablecoin. Despite these challenges, Tether’s USDT has retained its dominance, with a circulating supply of $162 billion as of mid-2025—a 18% increase since January. Its closest competitor, Circle’s USDC, trails with $64.7 billion in circulation [1].

The GENIUS Act’s passage has created a more favorable environment for Tether, which has historically operated from offshore jurisdictions. Ardoino emphasized that the company’s U.S. strategy will prioritize compliance and institutional partnerships, contrasting with its earlier approach. However, Tether remains cautious about public market exposure. While Circle Internet Financial, the issuer of USDC, has seen its stock surge over 500% since its June IPO, Tether has no plans to follow suit. “In general, we are not interested in becoming a public company,” Ardoino stated [1].

Regulatory scrutiny continues to shape Tether’s trajectory. The company has faced persistent criticism over the lack of third-party audits for its reserves, a gap that remains unaddressed. Ardoino revealed ongoing discussions with auditing firms but provided no timeline for completion. Meanwhile, U.S. regulators, including the Federal Reserve and SEC, have intensified oversight of stablecoins following the 2022 collapse of TerraUSD, which exposed systemic risks in collateral management and transparency [1].

Tether’s U.S. ambitions also reflect broader industry trends. The stablecoin market, now valued at over $252 billion, has drawn attention for its potential to disrupt traditional financial infrastructure. However, concerns over cybersecurity risks—highlighted by CertiK’s report of $2.47 billion in losses tied to stablecoin vulnerabilities—underscore the need for robust safeguards [1]. Tether’s strategy hinges on leveraging its technological expertise and decade-long market experience to navigate these challenges, particularly in emerging markets where it maintains a competitive edge [1].

The timing of Tether’s U.S. reentry coincides with macroeconomic uncertainties, including shifting trade policies and market volatility. While tariffs and geopolitical tensions may complicate market entry, Tether’s emphasis on regulatory compliance could help mitigate risks. The company’s past legal battles, including investigations into its reserve disclosures, highlight the delicate balance between innovation and oversight in the sector [1].

As Tether seeks to reestablish itself in the U.S., its success will depend on demonstrating transparency and aligning with evolving regulatory expectations. The GENIUS Act’s framework may provide a path for stablecoins to integrate into mainstream finance, but widespread adoption will require addressing lingering skepticism from regulators and institutional investors alike.

Sources:

[1] [LIVE] Crypto News Today: Latest Updates for July 22, 2025, https://cryptonews.com/news/live-crypto-news-today-latest-updates-for-july-22-2025/

[2] US stocks largely flat as investors weigh earnings, tariffs, https://crypto.news/us-stocks-flat-investors-weigh-earnings-tariffs/