Tether, the world’s leading stablecoin issuer, is gearing up to expand its operations in the United States, focusing on institutional clients. This strategic move follows the recent enactment of the Guiding and Establishing National Innovation for U.S. Stablecoins Act, commonly known as the GENIUS Act, signed into law by President Donald Trump on July 18, 2025.
Understanding the GENIUS Act
The GENIUS Act establishes a comprehensive regulatory framework for stablecoins—digital currencies pegged to stable assets like the U.S. dollar. The legislation mandates that stablecoin issuers maintain full backing with high-quality liquid assets and adhere to stringent transparency and consumer protection standards. This move aims to integrate stablecoins into the U.S. financial system while safeguarding users. (apnews.com)
Tether’s U.S. Expansion Strategy
In light of the new regulatory environment, Tether’s CEO, Paolo Ardoino, has outlined plans to introduce a regulated stablecoin product tailored for institutional use within the U.S. market. This initiative targets applications such as payments, interbank settlements, and trading infrastructure. Ardoino emphasized the company’s commitment to compliance, stating, “We are well in progress of establishing our U.S. domestic strategy. It’s going to be focused on the U.S. institutional markets, providing an efficient stablecoin for payments but also for interbank settlements and trading.
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Compliance and Transparency Efforts
To align with the GENIUS Act’s requirements, Tether is reportedly in discussions with a Big Four accounting firm to conduct a full audit of its reserves. This step aims to enhance transparency and address previous criticisms regarding the company’s reserve disclosures. Additionally, Tether is considering launching a U.S.-specific stablecoin with enhanced disclosures to meet regulatory expectations. (nftevening.com)
Maintaining a Global Focus
Despite its U.S. expansion plans, Tether remains committed to its operations in emerging markets, where it continues to see significant growth. The company has expressed a preference for operating privately and has no current interest in going public, distinguishing its approach from competitors like Circle, the issuer of USD Coin (USDC), which went public in June. (pymnts.com)
Implications for the Stablecoin Market
The GENIUS Act‘s passage and Tether’s subsequent expansion plans signal a transformative period for the stablecoin market. The legislation provides a clear regulatory pathway for stablecoin issuers, potentially encouraging more traditional financial institutions to enter the space. Major banks such as JPMorgan, Citi, and Bank of America have expressed support for the GENIUS Act, citing improved clarity and opportunities in the digital asset sector. (ft.com)
However, the Federal Reserve has historically been cautious in approving applications from non-FDIC-insured firms seeking direct access to its payment systems. The GENIUS Act’s provisions allowing stablecoin issuers to apply for bank licenses and act as custodians of their own digital tokens could set the stage for a new dynamic between the crypto industry and traditional banking institutions. (reuters.com)
Looking Ahead
As Tether navigates the evolving regulatory landscape, its focus on institutional clients within the U.S. market reflects a strategic adaptation to the new legal framework established by the GENIUS Act. The company’s efforts to enhance transparency and compliance may not only bolster its position in the U.S. but also set a precedent for stablecoin issuers worldwide.
The coming months will be crucial in determining how Tether’s U.S. expansion unfolds and how the broader stablecoin market adapts to the regulatory changes. Stakeholders will be closely watching how Tether and other issuers align with the new standards and what this means for the future of digital assets in the United States.
Tether’s U.S. Expansion Amid New Stablecoin Regulations:
- Trump signs new stablecoin regulations into law, a major milestone for crypto industry
- US Congress passes landmark bill to regulate stablecoins
- Trump takes victory lap over signing stablecoin bill he championed
also read:African Countries Struggle with Stablecoins Reinforcing Dollar Dominance Amid De-Dollarization Goals