tl;dr
Tether CEO Paolo Ardoino announced plans to register USDT under the GENIUS Act, committing to comply with its anti-money laundering and audit requirements within three years. USDT, issued from El Salvador, will continue trading in the U.S., supplemented by a new U.S.-specific stablecoin to meet dome...
Tether CEO Paolo Ardoino announced that his company plans to register its flagship USDT stablecoin under the recently signed GENIUS Act. Ardoino emphasized Tether's commitment to complying with the legislation’s requirements for foreign stablecoin issuers, ensuring USDT can continue trading in the U.S. alongside a potential new U.S.-specific stablecoin tailored for the American market. USDT, issued from El Salvador, faces scrutiny due to the GENIUS Act's rigorous anti-money laundering regulations and audit demands, which Ardoino acknowledged Tether intends to meet within the three-year compliance window.
Ardoino highlighted the distinct roles both stablecoins would play domestically, with USDT possibly serving expatriates by facilitating remittances abroad, while the new U.S.-based token would adhere fully to American regulatory standards. This dual approach marks a strategic effort by Tether to maintain its market dominance despite evolving legal landscapes and competitive pressures.
Circle CEO Jeremy Allaire, representing the second-largest stablecoin issuer, expressed confidence that the GENIUS Act aligns perfectly with Circle's longstanding regulatory compliance strategy. He pointed out that Circle’s history of public audits and adherence to global regulatory frameworks positions it favorably as the law integrates dollar digital currency into mainstream finance. Allaire views the act as an acceleration of Circle's opportunities, particularly as it transitions from offshored crypto trading toward fully legal digital dollar adoption.
The signing ceremony presented a rare occasion for the two industry leaders to appear together publicly, though their interactions remained strictly professional, underscoring their fierce competition in the stablecoin space. Both Ardoino and Allaire articulated their firms' readiness to navigate America’s new regulatory environment, reflecting the broader challenges and opportunities stablecoin issuers face amid growing legislative oversight.