Tether Registers USDT in US Under GENIUS Act, Launches Local Stablecoin

Tether, the issuer of the world's largest stablecoin USDT, has announced its intention to register USDT in the United States under the GENIUS Act's foreign issuer rules. This decision comes after President Donald Trump signed the GENIUS Act into law, which provides a pathway for non-U.S. stablecoin firms to operate within American borders. Paolo Ardoino, the CEO of Tether, stated that the company will comply with the new rules, including anti-money laundering laws and audited reserves, within a three-year period.

Tether's move to register USDT in the U.S. is part of a broader strategy to ensure compliance with American regulations while also launching a second product, a U.S.-specific stablecoin designed to meet domestic compliance standards. This local stablecoin, first hinted at in April, is intended to serve businesses and institutions that need to stay fully aligned with American laws. In contrast, USDT is expected to be used mostly by immigrants working in the U.S. who send remittances to their families abroad.

Tether's decision to pursue both avenues—registering USDT and building a local coin—comes after months of speculation that the company might be locked out of the U.S. market. With the GENIUS Act now signed into law, Tether is moving ahead on both fronts, aiming to secure its position in the U.S. stablecoin market. The company's commitment to compliance marks a shift in tone from its historical approach, which has often been criticized for lacking full transparency.

Circle, the second-largest stablecoin company, has also responded to the GENIUS Act. Circle, based in New York, has long positioned itself as a more transparent and regulation-first alternative to Tether. Jeremy Allaire, the CEO of Circle, stated that the GENIUS Act enshrines Circle's way of doing business, which includes regular public audits of its reserves and compliance with global regulatory frameworks. Circle plans to continue operating as it has, arguing that the new law rewards companies that already follow the rules. This positions Circle and Tether as direct competitors in the U.S. stablecoin market, each believing they are better suited to handle the pressure of America's new crypto law.