Tether Doubles Down: U.S. Stablecoin Strategy Emerges as GENIUS Act Looms

Tether just played its hand—announcing a U.S.-focused stablecoin pivot while regulators sharpen their knives. The GENIUS Act isn’t just background noise anymore; it’s a ticking clock.

Here’s the playbook:

• Regulatory Chess: Tether’s move looks like preemptive compliance—or a slick end-run around coming crackdowns. Either way, they’re not waiting for permission.

• Stablecoin Wars: With Congress eyeing stablecoins like a hawk eyes prey, Tether’s betting that moving first means moving last. Classic crypto power play.

• The Fine Print: No details yet on collateral or audits (shocking), but expect the usual dance of ‘trust us’ while the market shrugs and keeps trading.

Bottom line? Tether’s threading the needle—again. Because when has existential risk ever stopped crypto’s favorite liquidity monster? (Answer: Never. Thanks, fractional-reserve banking.)

TLDR

• Tether will launch a U.S.-based stablecoin to compete directly with Circle’s USDC.
• The company will also align its existing USDT token with the GENIUS Act’s foreign issuer pathway.
• Tether aims to meet full audit requirements and anti-money laundering standards within a three-year timeline.
• Circle confirmed that its USDC already complies with the GENIUS Act’s regulatory requirements.
• The GENIUS Act sets the first federal rules for stablecoins including full reserves and yearly audits.

Tether announced a major strategic MOVE as it plans to introduce a U.S.-specific stablecoin to challenge USDC’s market. The company will also align USDT with the GENIUS Act to continue operating under the U.S. foreign issuer path. This dual-track approach signifies Tether’s official entry into the U.S. market under new federal stablecoin regulations.

Tether Commits to GENIUS Act and Domestic Stablecoin

Tether CEO Paolo Ardoino confirmed that the company will pursue compliance through two coordinated efforts under the GENIUS Act. The company will create a new U.S.-based stablecoin while enhancing compliance standards for the existing USDT product. This marks Tether’s first formal step toward direct U.S. market participation with regulatory alignment.

After Trump signed the GENIUS Act, Tether said it will bring USDT to the U.S. via the foreign issuer path and launch a local stablecoin. Circle said the law affirms its compliance model. Both CEOs attended the White House signing but did not interact.https://t.co/JBgDEMUeRx

— Wu Blockchain (@WuBlockchain) July 19, 2025

The GENIUS Act establishes the first nationwide framework for stablecoins, requiring issuers to maintain full reserves and transparent disclosures. Tether aims to meet these expectations by focusing on anti-money laundering standards and conducting full independent audits. The company has set a three-year deadline to achieve full alignment with these compliance measures.

Currently, USDT issuance occurs in El Salvador, but the GENIUS Act allows foreign stablecoins limited access to the U.S. market. Tether plans to retain USDT for cross-border payments while its new coin will serve domestic users. This strategic separation allows the company to maintain global operations while addressing U.S. regulatory requirements directly.

Tether Faces Competitive Pressure as Circle Reaffirms Leadership

Circle, the issuer of USDC, responded confidently to Tether’s expansion into the U.S. regulatory framework. CEO Jeremy Allaire stated that Circle already meets the GENIUS Act’s requirements, including full backing by cash or Treasuries. The company has long promoted itself as a transparent, regulation-first issuer.

Circle’s infrastructure supports routine public audits and detailed reserve reporting, fostering trust with institutions and regulators alike. Its operations have focused on risk reduction and financial clarity, aligning closely with the expectations set by the new law. The company sees the GENIUS Act as confirmation of its regulatory model.

Circle believes its existing ecosystem already satisfies the law’s compliance criteria, including the mandate for yearly third-party audits. Unlike Tether, Circle has emphasized U.S.-based issuance and financial reporting from the start. These long-established policies position USDC as a strong and consistent option for regulated digital dollar usage.

Stablecoin Race Intensifies Under U.S. Regulatory Shift

Tether’s new compliance goals come as stablecoin regulations become more favorable under current federal leadership. With $156 billion of USDT in circulation, Tether now faces increasing scrutiny to prove its reserve claims. Critics argue that past reliance on partial reports and non-cash reserves may create regulatory hurdles.

Despite those concerns, Tether remains confident in its ability to meet U.S. standards and expand market share. The company emphasized its readiness to undergo full audits and strengthen reserve transparency. Its leadership sees this regulatory shift as an opportunity rather than a threat.

Circle appears poised to maintain its position but must now compete directly with a fully compliant Tether product in the U.S. market. Both companies are preparing to operate under clearer regulatory standards, which could reshape the global stablecoin industry.