The U.S. Congress has introduced two bills aimed at regulating stable digital currencies. These proposed laws potentially hinder Tether, a Salvadoran-based company, from issuing new USDT ($1.00) tokens in the U.S. Furthermore, there is a risk of Tether being delisted from prominent exchanges.
Bill Provisions and Requirements
The GENIUS Act, led by Senator Bill Hagerty, requires companies to maintain a 100% reserve and utilize a U.S.-based accounting firm to issue stable assets. A similar bill, the STABLE Act, was introduced in the House of Representatives. Both pieces of legislation aim to restrict operations of companies that do not meet the established criteria in the U.S. market.
Oversight and Market Risks
Tether provides periodic status reports instead of regular audit reports, raising various concerns among market participants. U.S. exchanges may impose trading restrictions on Tether to assess regulatory risks. In contrast, Tether’s competitor, USDC ($1.00), is known for its regular audits and disclosures.
A congressional staff member emphasized the importance of compliance, stating, “Tether will face consequences like other issuers. It cannot operate in the U.S. if non-compliant…
