Tether and Circle Gear Up for New GENIUS Act Compliance

Tether and Circle announced their compliance plans for the GENIUS Act following its signing by U.S. President Trump, impacting the stablecoin industry.

This regulatory move aims to reshape compliance measures and increase transparency in stablecoin auditing, affecting major issuers like Tether and Circle.

Tether and Circle Initiate Compliance with $1.3 Billion Profit Cushion

Tether has announced plans to comply with the newly signed GENIUS Act, which requires stablecoin issuers to implement reformative audits and adjust reserve structures. CEO Paolo Ardoino, pointing to the company’s $1.3 billion profit last year, expressed confidence in meeting these new obligations. Circle’s CEO, Jeremy Allaire, echoed this sentiment, viewing the legislation as compatible with their current business model.

The GENIUS Act introduces new compliance requirements. Tether will launch a specialized version of USDT for institutional users, marking a significant shift. Both companies aim to align with the new regulatory framework to ensure lawful operations. Initial industry analysis suggests that these moves may lead to increased investor trust in the stablecoin sector.

No direct update or official statement has been made regarding the GENIUS Act compliance or USDT institutional products.

Leadership Outlook: Industry Backs GENIUS for Secure Market Future

Did you know? The GENIUS Act’s compliance demands echo past regulation movements, such as the NYAG–Tether case which prompted transparency and reserve revelations in 2021, setting the scene for today’s stablecoin regulatory approaches.

Tether USDt (USDT) currently trades at $1.00, with a market cap of 161,645,823,325 USD, demonstrating a market dominance of 4.17%. Recent data from CoinMarketCap indicates the 24-hour trading volume stands at 84,199,023,295 USD, marking a 41.56% decrease. Over 90 days, its price has seen a 0.04% change.

Coincu analysts believe that Tether and Circle’s adjustments under the GENIUS Act will stabilize the stablecoin landscape, encouraging further institutional participation. Enhanced regulatory clarity and reserve alignment are expected to mitigate previous volatility and bolster investor confidence.