According to BlockBeats, on June 25, the U.S. Congress is set to pass the (GENIUS Act) which will incorporate stablecoins into the financial mainstream, sparking interest from startups, banks, and giants like Walmart.
According to the bill, stablecoin issuers are required to hold secure assets such as cash and short-term U.S. Treasury bonds as reserves, and large issuers must publish audited annual financial reports. This poses a challenge for Tether, which holds a 66% market share in the stablecoin market.
Tether's USDT is currently partially backed by Bitcoin and gold, and has long refused to disclose financial details. Former federal prosecutor Scott Armstrong pointed out that this could lead to Tether being unable to continue operating in the United States.
Tether representatives did not respond to requests for comment. CEO Paolo Ardoino indicated that a localized stablecoin may be issued. The bill sets a transition period, with the Senate version granting a 3-year grace period, while the House version requires compliance within 18 months, ultimately needing President Trump’s signature to take effect.
