Tether Pledges Compliance with US ‘GENIUS Act’ for Stablecoin Issuers

BlockBeats News reports that Tether’s CEO, Paolo Ardoino, confirmed the company’s commitment to ensuring compliance with the “GENIUS Act” for its dollar-pegged USDT token. The act was signed into law on July 18, 2025, by U.S. President Donald Trump.

Tether’s adherence to the GENIUS Act is crucial for its USDT to remain market-accessible in the U.S. Failure to comply could lead to significant market exclusion, simultaneously allowing competitors like USDC to capture a larger share.

Tether Prepares for GENIUS Act Compliance Challenges

Tether’s CEO Paolo Ardoino emphasized the company’s dedication to aligning USDT with the GENIUS Act requirements, which target anti-money laundering and reserve audits for foreign stablecoin issuers. Despite existing skepticism, Tether plans to complete these processes within three years. Ardoino stated, “We will do our utmost to ensure compliance with the ‘GENIUS Act’ for foreign issuers. Some people think Tether will not comply, which is a ridiculous idea.”

USDT’s market status hinges on its compliance within the given timeframe. If compliant, it retains U.S. access; otherwise, it risks being restricted, potentially benefiting competitors. Notably, USDT’s market value has reached 160.89 billion USD, showcasing its broad usage, notably on TRON. Tether’s current reserve composition challenges arise from the GENIUS Act’s demands for USD-backed holdings, contrasting with its existing reserves that include Bitcoin and precious metals.

Market responses to these developments vary. Some industry analysts view Tether’s compliance efforts as reassuring, while others remain skeptical about its ability to meet the new auditing standards. Ardoino himself labeled doubts about Tether’s willingness to comply as “ridiculous,” asserting a rigorous focus on meeting the requirements.

GENIUS Act: Historical Context and Market Analysis

Did you know? The GENIUS Act reflects an evolution in regulatory scrutiny, mirroring past disputes like Tether’s 2021 settlement with New York authorities over reserve misrepresentations.

Data from CoinMarketCap on July 19, 2025, lists Tether USDt (USDT) priced at $1.00, with a market cap of 160.89 billion USD, representing 4.18% market dominance. In the past 24 hours, trading volume reached 133.12 billion USD, a 20.12% decrease. Tether hasn’t observed significant price fluctuations recently, with minor changes logged across 90 days.

Coincu analysts highlight potential compliance hurdles faced by Tether, especially regarding the stringent audit standards imposed by the GENIUS Act. Historically, Tether’s audit practices have faced criticism, and achieving full compliance will be essential for maintaining market competitiveness, particularly in the U.S. market. regulatory scrutiny has been a significant point of focus in the evolving cryptocurrency landscape.