Tether to Launch U.S. Stablecoin Rivaling USDC

Tether to Launch U.S. Stablecoin Rivaling USDC, Circle Responds

Tether’s CEO announced intentions to establish a US-specific stablecoin and make USDT fully compliant with the GENIUS Act. Meanwhile, Circle confirmed its completely compliant environment as it prepared for the full application of the new law.

Tether’s Dual-Track Compliance Strategy

Tether CEO Paolo Ardoino has indicated that the business will use a dual-track strategy. According to Ardoino, Tether’s approach is to fulfill tight anti-money laundering criteria and then execute extensive audits of its reserves. He highlighted that the corporation has a three-year schedule to do this and would proceed with accuracy and determination.

The GENIUS Act and Its Impact on Stablecoins

The GENIUS Act permits foreign stablecoins to operate legally in the United States, even though USDT is currently produced in the United States. According to Ardoino, cross-border payments may be the main purpose for USDT. On the other hand, American customers would be the target of the planned stablecoin, with its headquarters located in the United States.

The GENIUS Act establishes the first government guidelines for stablecoins in the United States. Stablecoins must have complete reserves and offer clear information. Critics claim that Tether may find it challenging to follow these regulations, given that it controls more than two-thirds of the global stablecoin market and has $156 billion in circulation. Its history of only providing partial reports and keeping a combination of bitcoin and precious metals in its reserves is the root of this problem.

However, Ardoino promised that Tether would not disappear. At the White House event, he tweeted on X that he was confident in the US market and delighted at Tether’s worldwide 160 billion USDT issuance.

“Now that President Trump has led the United States to embrace digital assets, we believe we can increase tenfold and cement the dollar’s global dominance,” he said in a private message.

Circle Welcomes GENIUS Act as Validation

The company that produces USDC, Circle, seems unconcerned with Tether’s heightened ambitions. Circle CEO Jeremy Allaire applauded the GENIUS Act as a vindication of the company’s long-standing goal of operating transparently under US rules.

Allaire emphasized that major organizations worldwide have learned to trust Circle’s concept, which is based on strict reserve processes and public audits. He emphasized that Circle has built confidence with key institutions, and the GENIUS Act would further strengthen that.

GENIUS Act Aligns with Circle’s Long-Term Strategy

Notably, the GENIUS Act is widely seen as validating Circle’s long-standing promotion of USDC as a safer, fully regulated alternative to Tether. Circle has generally already met the act’s requirements that issuers back stablecoins with cash or short-term Treasuries and are subject to annual audits.

The Future of USDT and USDC Under New U.S. Law

The cryptocurrency bill may trigger a round of audits, making both domestic and foreign issuers meet more stringent requirements. Creating a stablecoin tailored to the US and bringing USDT into compliance presents both challenges and opportunities for Tether. Circle sees the law as support for its compliance-first approach.

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