The GENIUS Act, a proposed stablecoin regulation in the US, poses the most significant threat to Tether's market dominance, according to the Wall Street Journal. Tether currently commands 66% of the stablecoin market. The GENIUS Act aims to integrate stablecoins into the formal financial system, attracting interest from major players like banks and Walmart. Key provisions include a mandatory 1:1 reserve requirement, backed by safe assets like cash and short-term US Treasury bonds. Issuers exceeding a certain size must also undergo annual audits by external auditors and disclose financial statements. This presents a challenge for Tether, which holds reserves in assets like Bitcoin and gold. Moreover, the company has faced ongoing controversy regarding financial transparency. Compliance with the GENIUS Act's stringent reserve and auditing requirements could prove difficult and significantly impact Tether's current operational model. The potential regulatory burden could reshape the stablecoin landscape and challenge Tether's leading position. ```

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