Tether and Circle Respond to U.S. GENIUS Act with Strategic Moves

Industry feedback has been swift and robust. Tether’s CEO, Paolo Ardoino, expressed confidence in meeting compliance needs, backed by the company’s recent $1.3 billion profit, emphasizing transparency and adaptability as core virtues. Meanwhile, Coinbase CEO Brian Armstrong called for expedited regulatory changes, labeling the GENIUS Act a crucial precursor, but pointing out the necessity for additional market structure legislation. “Transparency and compliance are core to Tether’s evolution.” – Paolo Ardoino, CEO, Tether

The GENIUS Act signifies a substantial regulatory milestone that is likely to impact financial operations of major players like Tether and Circle. The legislation may lead to enhanced market stability and institutional trust in the digital asset ecosystem.

Tether and Circle Strategize Under the GENIUS Act

Following the GENIUS Act’s approval, Tether announced its commitment to aligning USDT operations with new U.S. regulations. A new USDT version is set to launch, specifically targeting institutional users with structured audits and reserve reforms. Circle, led by CEO Jeremy Allaire, endorsed the GENIUS Act, highlighting it as a model for their compliant approach to digital finance. The act’s introduction mostly affects reserve policies within Tether and Circle’s ecosystem. In an effort to adapt, Tether is modifying its reserve foundation and audit processes, whereas Circle perceives this legislation as a critical endorsement of its operational model.

As of July 19, 2025, Tether USDt (USDT) held a steady market price of $1.00, supporting a substantial market cap of 160,914,039,350.00. Despite a 14.67% reduction in trading volume within 24 hours, USDT’s circulating supply remains robust at 160,819,014,811.00. CoinMarketCap reports minimal fluctuations over the past three months, maintaining market stability.

Regulatory Influence on Stablecoin Market Dynamics

Did you know? U.S. regulatory shifts similar to the GENIUS Act previously resulted in significant stablecoin market cap growth, as seen with prior USDC advancements.

Coincu research highlights that while regulatory clarity offers potential financial growth due to increased institutional adoption and reduced risk, the need for compliance investment could challenge operational costs temporarily. Additionally, technological advancements spurred by regulation may stimulate innovation in decentralized financial products and protocols.

Industry feedback has been swift and robust. Tether’s CEO, Paolo Ardoino, expressed confidence in meeting compliance needs, backed by the company’s recent $1.3 billion profit, emphasizing transparency and adaptability as core virtues.