#ethereum $TRUMP $ETH #🏛️ 1. GENIUS Act enters final stretch

* **Overview**: The Senate is poised to pass the GENIUS Act, which would impose stringent regulations on U.S.-pegged stablecoins—reserve requirements, audit trails, and liquidity mandates in T‑bills or similar instruments ([barrons.com][1]).

* **Implications**: U.S.-based issuers, including banks, could enter the stablecoin marketplace, potentially scaling faster due to trust and regulatory clarity ([coindesk.com][2]). Non‑bank issuers like Tether would be capped unless they comply.

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### 🧩 2. Tether’s position challenged

* **Non-compliance risks**: Tether’s flagship token, USDT, currently falls short—JPMorgan estimates around 83% compliance with GENIUS—raising red flags ([coindesk.com][3]).

* **Market-control threats**: S\&P notes that limiting non-bank issuers to \$10 billion issuance (for U.S. users) could diminish Tether’s dominance, paving the way for banks and more transparent providers like Circle's USDC ([coindesk.com][2]).

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### 🌍 3. Strategic pivots & global shift

* **U.S.-focused USDT?**: Tether’s CEO hints at launching a compliant “U.S.-focused” stablecoin as soon as late 2025 or early 2026 if legislation permits ([coindesk.com][4]).

* **Emerging market bet**: Meanwhile, USDT remains popular outside the U.S., serving remittance flows and unbanked populations, particularly in Asia and Africa ([dig.watch][5]).

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### 📊 4. Treasury footprint amplifies

* **Billions in bills**: Tether holds nearly \$100 billion in U.S. T‑bills—1.6% of the entire market—making it one of the top non‑sovereign Treasury investors ([arxiv.org][6]).

* **Market impact**: Its buying has a tangible effect; analysis shows Tether’s purchases have lowered 1‑month yields by up to \~24 basis points ([arxiv.org][6]).

### ⚖️ 5. Regulatory loopholes & debates

*Jurisdictional carve‑outs*: The Senate’s GENIUS Act may extend oversight to foreign issuers serving U.S. users, but stances differ—some House versions exempt non-U.S. stablecoins for yrs