Tether Plans Compliance with U.S. GENIUS Act Regulations

TLDR

• Tether will introduce a U.S.-specific stablecoin.
• Compliance deadline set for three years under GENIUS Act.
• USDT is the largest stablecoin globally, impacting DeFi.

Tether has announced plans to comply with the U.S. GENIUS Act. This includes adapting its USDT offering for the U.S. and introducing a new U.S.-specific stablecoin.

Paolo Ardoino, CEO of Tether, stated the company’s commitment to meet compliance in three years. Recent announcements came as President Donald Trump signed the GENIUS Act into law, requiring stablecoin issuers to follow strict AML and audit regulations.

Tether’s Strategic Moves for U.S. Entry

Tether is preparing to launch a new stablecoin specifically for the U.S. market. Paolo Ardoino emphasized that Tether would work hard to comply with the legal requirements under the GENIUS Act for its USDT tokens.

Tether currently issues USDT primarily from El Salvador. Ardoino, known for his focus on global regulatory developments, expressed dedication to meeting U.S. compliance standards.

Market Dynamics and Affected Entities

USDT is the largest stablecoin globally. The planned changes will impact USDT, other stablecoins like USDC and DAI, and DeFi protocols that rely on stablecoin liquidity.

The cryptocurrency market, including Ethereum and Bitcoin, has deep connections with USDT. Liquidity and trading patterns on exchanges may shift due to these developments.

Key Regulatory Changes with GENIUS Act

The GENIUS Act was signed on July 18, 2025. It sets new standards for reserve transparency, legal compliance, and third-party audits for stablecoin issuers.

The act provides a three-year window for foreign stablecoin issuers to comply with these regulations, focusing on AML requirements. This current initiative is a significant step in U.S. cryptocurrency regulation.

“We’ll be working very, very hard to make sure we comply with the foreign issuer pathway within the GENIUS Act.”

— Paolo Ardoino, CEO of Tether

Impact on DeFi and Related Cryptocurrencies

Changes in Tether’s compliance will indirectly affect DeFi platforms such as AAVE and MakerDAO. These platforms rely on stablecoin liquidity in their collateral systems.

Historically, regulatory changes have led to shifts in liquidity across DeFi pools. Observations continue regarding how the GENIUS Act may influence this ecosystem.

Community and Developer Sentiment

There are active discussions on Tether’s path to U.S. compliance on platforms like Reddit and Twitter. The developer community is observing any GitHub updates related to the new U.S. stablecoin.

No major announcements from key figures like Vitalik Buterin or Arthur Hayes have been noted. The cryptocurrency community is keenly awaiting Tether’s official moves.