- Tether will issue USDT in the U.S. under the GENIUS Act’s foreign issuer framework.
- A second, U.S.-compliant stablecoin is being developed for domestic regulatory alignment.
- Circle affirms the GENIUS Act supports its audit-based compliance model and existing reserves.
Tether will begin issuing USDT within the United States under a new legal system following President Donald Trump’s signing of the GENIUS Act on Friday. The company also confirmed plans to launch a separate U.S.-based stablecoin to meet domestic compliance requirements.
Speaking at the White House following the signing, Tether CEO Paolo Ardoino announced that the company will comply with the “foreign issuer” provision outlined in the GENIUS Act. USDT, which is currently issued from El Salvador, is expected to qualify for use within the U.S. through this pathway.
According to Ardoino, the GENIUS Act gives Tether three years to satisfy all regulatory obligations. These include anti-money laundering compliance, full audited reserves, and transparency on assets backing its stablecoin. Tether has not previously completed a formal audit, but the CEO indicated that the company intends to meet these standards. “We’ll be working very, very hard to make sure we comply with the foreign issuer pathway within the GENIUS Act,” Ardoino said. “It’s crazy that sometimes people think Tether will not comply.”
At the event, he highlighted that Tether has issued 160 billion USDT globally and plans to expand that number, citing the new law as an opportunity to grow its footprint in the U.S. market.
U.S.-Specific Stablecoin Also in Development
In addition to USDT’s approval under the foreign issuer framework, Tether confirmed development of a separate stablecoin tailored for the U.S. market. This new token will follow the domestic issuer route as required under the GENIUS Act and is intended to align with stricter federal standards.
The plan for a localized stablecoin was initially hinted at in April, prior to the bill’s passage. Tether now plans to offer both USDT and the U.S.-specific coin concurrently, targeting different user segments.
Ardoino explained that USDT may be used predominantly by expatriates in the U.S. for remittance purposes. At the same time, the new domestic stablecoin will be positioned for broader retail and institutional use within U.S. borders.
Regulatory Changes Reshape Competitive Landscape
The GENIUS Act introduces the first nationwide regulatory framework for stablecoins in the U.S., mandating full reserve backing, transparent reporting, and annual audits. The legislation impacts all issuers operating in the country, including foreign entities seeking to access U.S. users.
Circle, issuer of USDC, responded positively to the law. CEO Jeremy Allaire stated that the Act validates Circle’s existing compliance approach. He emphasized that Circle’s model already includes public audits and cash or Treasury-backed reserves.Allaire noted that the company has developed institutional trust by aligning with U.S. regulatory expectations, and that the GENIUS Act provides further clarity to support that structure. Circle is expected to maintain its operations without disruption under the new rules.
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