Tether CEO Commits USDT Compliance with US GENIUS Act

Tether Faces US Compliance Hurdles with GENIUS Act

President Donald Trump’s signing of the GENIUS Act necessitates that foreign stablecoin issuers such as Tether ensure compliance to operate in the U.S. market. Tether CEO Paolo Ardoino affirmed plans to adhere to these regulations.

Tether Faces US Compliance Hurdles with GENIUS Act

The GENIUS Act imposes stringent requirements on stablecoin issuers, impacting Tether’s USDT significantly. Ardoino’s commitment to compliance seeks to maintain Tether’s U.S. market presence. This marks a crucial point for Tether as regulatory scrutiny intensifies.

Tether’s strategic adaptation involves complying with the GENIUS Act for USDT to operate legally in the U.S. CEO Paolo Ardoino announced plans for full compliance, aiming for audited reserve standards required by the Act.

“Tether intends to comply with the GENIUS Act and create a US-based stablecoin, but also hopes that USDT will be approved by GENIUS.” — Paolo Ardoino, CEO, Tether (Coindesk)

Market Dynamics Shift Amid Tether’s Regulatory Navigation

Did you know? Amid increased regulatory focus, Tether’s commitment to reform aligns with past regulatory periods where non-compliant stablecoins, like during the European MiCA rollout, faced liquidity declines and delistings.

Tether USDt (USDT) maintains a market cap of $160.92 billion, with a trading volume of $168.54 billion in 24 hours, despite experiencing minor price shifts. The token’s price stability contrasts with regulatory challenges it faces with the GENIUS Act demands.

Expert analysis suggests Tether’s compliance efforts might require significant internal changes, potentially altering its competitive landscape. Historical data shows regulatory adjustments often shift market dynamics towards more transparent alternatives.