💲 WSJ: The adoption of GENIUS – a failure for Tether (#USDT).
▪The GENIUS law will establish strict requirements for stablecoins and issuers, which could seriously impact Tether's positions.
▪According to GENIUS – issuers must ensure 100% reserves in liquid assets (cash/government bonds), conduct annual audits, ensure transparency of reserves, and register in the USA.
▪The company primarily backs USDT with volatile assets (BTC, Gold) and does not disclose details of the reserves.
▪Relocating the headquarters to El Salvador is unlikely to help circumvent American requirements.
▪Tether has promised to conduct an audit since 2017.
▪The only way out for the crypto giant is to create a new stablecoin for the USA or focus on markets outside American jurisdiction.