TLDR
- Tether plans U.S.-specific stablecoin to comply with GENIUS Act, enhancing U.S. market presence.
- Circle’s USDC already meets GENIUS Act’s requirements, solidifying its compliance edge.
- Tether’s new stablecoin will be fully backed by U.S. dollars or short-term Treasuries.
- The GENIUS Act’s passing intensifies competition between Tether’s USDT and Circle’s USDC.
Tether is preparing to launch a new U.S.-specific stablecoin, signaling its commitment to meeting the evolving regulatory landscape set by the recently passed GENIUS Act. The move is designed to strengthen its position in the U.S. market while ensuring compliance with stricter financial guidelines.
This decision comes as Circle’s USDC remains a dominant player in the stablecoin space, benefiting from its long-standing regulatory approach. The upcoming competition between these two giants is set to reshape the future of digital currencies in the U.S.
Tether’s Strategy to Launch a U.S.-Specific Stablecoin
Tether CEO Paolo Ardoino confirmed that the company plans to launch a U.S.-specific stablecoin alongside its global asset, USDT. The new stablecoin will adhere to the rigorous requirements of the GENIUS Act, which mandates that stablecoins be fully backed by U.S. dollars or short-term U.S. Treasuries.
Additionally, Tether will implement full reserve audits to address past transparency concerns. This move represents Tether’s first official commitment to the U.S. market under the new regulatory framework.
The U.S.-focused stablecoin will directly target domestic users, providing a fully compliant solution. At the same time, USDT will continue to serve global markets while remaining aligned with the GENIUS Act’s foreign issuer pathway.
After Trump signed the GENIUS Act, Tether said it will bring USDT to the U.S. via the foreign issuer path and launch a local stablecoin. Circle said the law affirms its compliance model. Both CEOs attended the White House signing but did not interact.https://t.co/JBgDEMUeRx
— Wu Blockchain (@WuBlockchain) July 19, 2025
Ardoino emphasized a three-year timeline for full compliance, demonstrating Tether’s commitment to meeting the strict regulatory requirements. However, this transition may present challenges, particularly due to Tether’s previous reserve practices, which included non-compliant assets like Bitcoin and precious metals.
Despite these obstacles, Ardoino remains confident in Tether’s future and its ability to comply with U.S. regulations while maintaining its global presence.
Circle’s Response to the GENIUS Act
Circle, the issuer of USDC, has expressed confidence in its ability to navigate the new regulatory environment created by the GENIUS Act. CEO Jeremy Allaire welcomed the legislation, viewing it as validation of Circle’s long-standing strategy to operate transparently and in full compliance with U.S. regulations.
Circle has already adhered to many of the act’s requirements, including backing USDC with cash and short-term U.S. Treasuries, and submitting to annual audits by U.S.-registered firms.
Allaire emphasized that Circle has earned the trust of major institutions globally by maintaining rigorous reserve practices and prioritizing transparency. He believes the GENIUS Act will further solidify USDC’s position as a safer, fully regulated stablecoin compared to competitors like Tether. Circle’s reputation as a compliant stablecoin issuer is expected to strengthen with these new regulations.
As the stablecoin competition intensifies, Circle is well-positioned to capitalize on the growing demand for secure, transparent digital assets. The passage of the GENIUS Act gives Circle a competitive edge in the U.S. market.
The Competitive Landscape for U.S. Stablecoins
USDT issuer Tether plan to launch a U.S.-specific stablecoin will intensify competition with Circle in the U.S. market. Tether’s global reach, especially in emerging markets, makes it a dominant player, but its ability to meet stringent U.S. regulatory standards will determine its success.
Tether’s dual-token approach, with USDT continuing to serve international markets, aims to help the company navigate U.S. regulations while maintaining its position in other regions.
Circle, on the other hand, is already well-positioned in the U.S. market. USDC has been in alignment with U.S. regulations for years, providing a strong foundation in compliance and transparency. As the GENIUS Act takes full effect, demand for stablecoins that meet U.S. regulatory standards will rise, which could benefit Circle’s compliance-first strategy.
The evolving stablecoin landscape is reshaping the market dynamics. Both Tether and Circle are adjusting their strategies to meet the new regulatory framework. As the deadline for compliance approaches, both companies must prove their adaptability.
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