Will Tether’s USDT Get Banned in the US When the GENIUS Act Becomes Law?

Once signed into law, the GENIUS Act will give stablecoin issuers 18 to 36 months to comply with its stipulations. If they fail, they will be banned from operating within the US market. Tether, the issuer of the world’s largest stablecoin USDT, has a difficult decision to make. 

Known for its lack of transparency and failure to publish regular audits, Tether can choose one of three options. It can either comply, withdraw from the US market, or launch a separate stablecoin that abides by the GENIUS Act’s thorough transparency requirements and curbs risky practices. 

The GENIUS Act aims to bridge cryptocurrency and traditional finance in the United States by providing essential regulatory safeguards for stablecoins. These are the least volatile digital assets crypto offers and the most attractive for risk-averse individuals.

Though the bill’s passage marked a powerful victory for an industry once deemed a Ponzi scheme by most, not everyone is set to win under its guidelines.

Tether’s USDT, which dominates over 60% of the global stablecoin supply, might be among the losers, as the act introduces unprecedented demands for transparency and oversight.