- Tether gets green light to issue USDT in United States market.
- GENIUS Act lets Tether mint coins legally under foreign issuer rule.
- Circle defends lead, says audits prove trust amid stablecoin market rivalry.
Tether will soon start issuing USDT inside the United States. This change comes after President Donald Trump signed the new GENIUS Act on Friday. This legislation will be the initial major move in America towards the national regulation of stablecoins. It will provide the stablecoin firms with a simpler environment that will enable them to abide by clear guidelines.
Tether Gains U.S. Approval to Issue USDT
So far, Tether has never issued USDT in the United States, only in other nations, such as El Salvador. Under the new law, Tether is now able to issue USDT in the U.S. and adhere to a peculiar provision, the so-called foreign issuer clause. This implies Tether will be able to maintain its base overseas, yet it can still mint coins that are legal in the U.S. market.
The signing was followed by a speech by the Tether CEO, Paolo Ardoino, at the White House. He added that Tether will comply with any new regulation. He also stated that Tether is going to introduce another stablecoin, which would be entirely rooted in the U.S. This new coin will assist Tether to be able to comply with all local requirements.
However, Tether is not the only entity making the move. Its biggest rival, Circle, was prompt to respond. According to Circle CEO Jeremy Allaire, the new law shows that Circle has been running things right over the past years. Circle is a New York-based company that has always collaborated with regulators.
In contrast to Tether, Circle publishes audits available to the public, which reveal the amount of money that is behind its stablecoin, USDC. This is something that Tether was criticized for failing to do in the past. How Circle conducted its business enabled it to gain the trust of large banks and investors, as Jeremy put it. He thinks that the new law will strengthen this trust further.
GENIUS Act Sets Stage for Global Stablecoin Rule Changes
The competition between Circle and Tether has once again started heating up. Tether now needs to demonstrate that it will comply with new rules and that it will disclose its reserves. Circle also wants people to regard it as the safe option.
The GENIUS Act could also change the whole crypto market. Additional USDT on U.S. exchanges may simplify trading in Bitcoin since traders will have access to more stablecoins. However, this may make markets less stable. Large transactions of money may cause unexpected price fluctuations. The new regulations may not allow some of the smaller crypto firms to stay afloat, and they may be compelled to close or merge with other larger ones.
Both Paolo Ardoino and Jeremy Allaire were present at the White House at the signing. Both of them were present as President Trump signed the bill. Then they addressed the reporters. Although they were within a few steps of each other, they never spoke to one another. They shook hands but did not look at each other.
In the future, the actual challenge will be how Tether will manage the U.S. regulations. The people who invest are eager to know whether Tether will indeed give audits and cooperate openly with authorities. Circle, in its turn, would like to continue demonstrating that it is already playing by the book.
This is a turning point for stablecoins in America. Other countries might be likely to follow suit with their laws with the passage of the GENIUS Act. At least until now, all the attention is focused on what Tether and Circle will bring to the stablecoin narrative.
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