Source: Can Tether's Dominance Survive the U.S. Stablecoin Bill?
Compiled & Translated by: Lenaxin, ChainCatcher
Background
- Stablecoin issuer Tether may soon face significant challenges in the U.S. market, with its USDT potentially not meeting the standards outlined in the Senate's GENIUS Act.
- Legal experts suggest Tether may need to wait and see, but critics of the bill argue that Tether will still find significant loopholes to attract U.S. investors.
USDT, issued by Tether, is the stablecoin with the largest global market share. The latest data shows that its dollar-pegged issuance has reached $155 billion. However, analysts point out that Tether's current model may struggle to meet the upcoming U.S. regulatory requirements. The U.S. Senate will conduct a final review of the "2025 U.S. Stablecoin National Innovation Guidance and Establishment Act" (GENIUS Act) on Tuesday, which will be the first federal bill to enter the legislative process in the cryptocurrency field. The bill will then be submitted to the House of Representatives and will require consensus from both chambers before being signed into law by the president.
Industry experts believe Tether may face two choices: adjust its business model to meet the new U.S. regulations or exit the U.S. market and focus on overseas business. The clarity of the U.S. regulatory framework may drive industry expansion and influence regulatory approaches in other jurisdictions.
The current draft legislation provides a path for foreign stablecoin issuers to enter the U.S. market, but the compliance procedure is complex. According to the draft requirements, if companies like Tether wish to issue tokens to U.S. users, they must meet the following conditions: first, they must be supervised by a foreign regulatory body recognized by the U.S. with standards comparable to those in the U.S.; second, they may need to register with the Office of the Comptroller of the Currency (OCC) and be subject to regulation; finally, they must maintain adequate reserve funds with financial institutions in the U.S. to ensure redemption for U.S. customers in the event of the issuer's bankruptcy.
The bill imposes strict reserve management requirements on all regulated issuers: they must hold high-liquidity assets such as cash and U.S. Treasury bonds equal to the circulating tokens. In terms of compliance mechanisms, issuers must undergo monthly audits by registered accounting firms, with audit reports signed and certified by the company's CEO and CFO, meaning executives will bear personal legal responsibility for the accuracy of information disclosure. It is worth noting that this regulatory framework sets more frequent information disclosure obligations for stablecoin issuers compared to traditional financial institutions.
Additionally, according to the bill's requirements, related enterprises must fully comply with anti-money laundering regulations applicable to U.S. financial institutions.
Does Tether Need to Rush?
[The rest of the translation follows the same professional and accurate approach]
