How the GENIUS Act Could Reshape Tether (USDT-USD) – And Why Stablecoin Titans Should Care

The GENIUS Act isn’t just another regulatory footnote—it’s a potential earthquake for the $83B stablecoin empire. Tether’s dominance faces its most serious legislative threat yet.

Here’s the breakdown:

The Compliance Hammer Drops

New reserve requirements could force USDT to show its cards—something it’s notoriously avoided. Daily attestations? Liquidity buffers? This isn’t your 2017 crypto wild west anymore.

The Domino Effect

Exchanges clinging to USDT pairs might need contingency plans. Meanwhile, regulators are salivating over potential ‘stablecoin flight’ to compliant alternatives. (Because nothing says ‘financial innovation’ like herding investors into government-approved options.)

Tether’s Endgame

Will they adapt or double down on opacity? One thing’s certain: the days of operating in regulatory gray zones are numbered. The GENIUS Act might finally force crypto’s most controversial giant to choose—play by the rules or risk becoming the next cautionary tale.

Confident Investing Starts Here:

• Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions
• Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter

If the law is enacted, stablecoin issuers would need to provide monthly, audited reports that show exactly what is backing their tokens. This requirement comes as regulators grow increasingly worried about the liquidity of certain reserve assets during times of market stress. Indeed, Tether’s use of assets like Bitcoin and gold (GLD)—combined with its limited transparency—could make it difficult for the company to comply with the new standards, according to a Wall Street Journal report quoting former federal prosecutor Scott Armstrong.

While Tether does hold a large share of its reserves in U.S. Treasury bills, which are seen as highly liquid and safe, regulators remain cautious. This is because as stablecoins become more widely used, they could potentially create new risks in the short-term Treasury market. The GENIUS Act also requires stablecoin companies to register with U.S. regulators, unless they’re based in a foreign country with similar oversight. Since Tether is headquartered in El Salvador, its ability to continue serving U.S. users may depend on whether American authorities view Salvadoran regulations as strong enough.

Is COIN Stock a Good Buy?

Although Tether might not benefit from the new GENIUS Act, crypto exchange Coinbase (COIN) looks like it might. As a result, Wall Street analysts have a Moderate Buy consensus rating on COIN stock based on 13 Buys, 11 Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. However, the average COIN price target of $274.15 per share implies 22.9% downside risk following its recent rally.